GBP/USD hits weekly lows under 1.4100 as the US dollar soars

• Data boosts the US dollar across the board on Thursday.
• Cable heads for lowest daily close since May 14.

The GBP/USD is falling more than 50 pips and is back under the 20-day moving average for the first time in a month. A rally of the US dollar across the board sent cable to the 1.4100 area, after trading above 1.4200, during the European session. It bottomed at 1.4099.

Positive data ahead of NFP

In the US, a decline in initial jobless to a fresh pandemic low under 400K and a net change in employment of almost a million reported by ADP, triggered a rally of the greenback. Later, the ISM service sector index also confirmed the positive economic momentum.

The economic numbers boosted US yields and also the greenback. The DXY jumped to 90.50, reaching two week highs. At the same time the 10-year yield rose to 1.62%. In Wall Street, equity prices bounced sharply during the last hours and turned positive.

The improvement in risk sentiment during the American session did not weaken the greenback that moved only modestly off highs.

The bearish pressure remains in place in the GBP/USD. A break under 1.4100 could point to a deeper correction.

Technical levels