GBP/USD daily chart
It’s a tough time to be a fan of the dollar as there are multiple charts breaking down at the moment for the greenback. USD/JPY is contesting its 100-day moving average as outlined here and we are also seeing the likes of EUR/USD and AUD/USD climb to their highest in seven weeks. Adding to that now is a potential upside break in GBP/USD as well, as seen above.
The pair is now closing in on its December high of 1.2827 as buyers continue the good form this week. The close above 1.2800 yesterday was encouraging and all eyes are on the US jobs report today now. A softer set of numbers could well spark a run higher across dollar pairs, this included.
The 200-week moving average at 1.2850 will be a key line in the sand to watch next. But if buyers can navigate a break of that, the 1.3000 mark looks to be the next likely destination for GBP/USD in such a scenario.
But for now, let’s not get too ahead of ourselves. The non-farm payrolls release will be the first key hurdle before handling the reaction before the weekend.