GBP/USD breaks above 1.3000 to highest in 3 weeks

A weak US dollar pushed GBP/USD further to the upside. The pair broke above 1.3000 and climbed to 1.3031, reaching the highest level since August 14. Cable remains near the highs holding a bullish tone and consolidating on top of 1.3000. 

The greenback was falling modestly in the market and after the release of the US durable goods orders report accelerated the decline. US factory orders contracted in July 3.3% more than expected, while orders excluding the transportation sector rose 0.5%.

The Dollar Index (DXY) dropped to 92.10, the lowest since Friday and near the 2017 intraday low located at 92.01.  Rising US bonds are affecting the US dollar. The 10-year yield fell to 2.084%, the lowest since November. 

Technical levels

To the upside, resistance levels might be located at 1.3030/35 (daily high), 1.3060 (Aug 7 high) and 1.3110 (Jul 14 high). On the flip side, support levels might now lie at 1.2995 (Sep 4 high), 1.2940 and 1.2905/10 (weekly low).