GBP/USD jumps above 1.2510, to 3-week highs

GBP/USD accelerated to the upside during the last hour and broke above the strong resistance area located around 1.2510 and jumped to 1.2560, hitting the highest level in three weeks. Then it pulled back and it was trading at 1.2530/35, 95 pips above yesterday’s closing price. 

The break of the mentioned key level boosted the pound across the board. EUR/GBP fell to fresh lows below 0.8450 and GBP/CHF moved back above 1.2600. 

The last move to the upside was triggered by an extension of the decline of the US dollar across the board. The US dollar index fell to 100.83, the weakest level in three days. 

GBP/USD levels to watch 

The area around 1.2510/20 has now become an important short-term support for the bullish bias. If the pair holds above, the upside momentum could remain strong. 

To the upside, resistance levels might be seen at 1.2560 (daily high), 1.2580 (Feb 09 high) and 1.2610. On the opposite direction, support could be located at 1.2505/10 (Feb 22 high), 1.2475 (20-hour moving average) and 1.2425 (daily low).