GBP/USD falls back from a new 2025 high at 1.2946 in Asian trade

On Friday the GBP/USD reached its best level of the year to date, when it rose to 1.2945. That high look it just past a technical level, at 1.2924 (61.8% of the 1.3434-1.2100 fall). The GBP/USD later closed the week in the US at 1.2920. So, despite reclaiming that technical level, it was not able to close above it. Of course it continued to post another daily close well above the 200 day moving average it had busted above on Tuesday (in place as of the close on Friday, at 1.2788). As noted a few times since my return last week, the real driver for this has been another surge in UK yields. However, those yields did back off slightly on Friday. The 10 year note, which had peaked at 4.76% on Wednesday, fell back to around 4.63% by the close on Friday. We need to keep an eye on that again this week, for further clues, as to how it might impact the Pound. Overnight the GBP/USD did open lower and fall back to 1.2893. The rebound that followed saw it edge above 1.2945, but only by a single pip. The Pound has since fallen back again from 1.2946 and push towards the earlier low, currently trading at 1.2909