GBP/USD rises above 1.2600 as pound strengthens

• Cable rebounds a hundred pips from daily low, eyes Wednesday’s top
• Pound gains momentum during American session, hit highs also versus EUR and CHF.

The GBP/USD has been rising constantly over the last hours and it accelerated to the upside after the beginning of the American session. A weaker US dollar and also a strong recovery of the pound across the board, pushed the pair further to the upside above 1.2600.

Recently cable printed a fresh daily high at 1.2625 and it is hovering near the top, with the positive momentum intact, looking at Wednesday’s high at 1.2650.

The US dollar, measured by the DXY turned negative and dropped back below 96.00, after reversing at 96.30. The better-than-expected US June retail sales report did not offer support to the greenback. Equity prices are modesty lower in Wall Street and US yields are falling modestly.

The pound is among the top performance of the American session unaffected by UK accusing Russia of trying to steal COVID-19 vaccine research. EUR/GBP pulled back from near 0.9100 back to the 0.9050 area while GBP/CHF rose back to 1.1900.

Technical levels