Following a consolidation phase around 1.25, the GBP/USD pair has accelerated higher in the late US afternoon as the greenback was being sold across the board. At the moment, the pair is up 0.06% at 1.2545.
President Trump’s recent comments were the primary driver of the USD sell-off accompanied by the sharp fall witnessed in the U.S. Treasury yields. The 10-year bond yield lost more than 3% on the day on its way to a new low since Trump’s election victory. Rising geopolitical concerns continue to push investors towards safer Treasury bonds, causing lower yields.
In the meantime, President Trump suggested that a strong dollar was harmful to the United States and he liked the low-interest rate policy. At the moment, the DXY is losing 0.57% on the day at 100.06.
The immediate resistance for the pair could be seen at 1.2560 (Mar. 31 high) followed by 1.2615 (Mar. 27 high) and 1.2700 (psychological level). To the downside, supports are aligned at 1.2500 (psychological level), 1.2470 (20-DMA) and 1.2395/1.2400 (100-DMA/psychological level).