GBP/USD breaks above 1.2850 after Yellen

The US dollar dropped across the board after the release of Yellen’s speech at Jackson Hole. GBP/USD rose above 1.2850, reaching fresh 3-day high. 

No surprises from Yellen 

The speech from Yellen, was defined as “bored” by some market analysts. It did not address the potential path of monetary policy and was mostly about the financial crisis, regulation and the improvement since then. 

Yellen did not offer clues for future policies, however, the greenback tumbled. The Dollar Index fell from 93.20 to 92.76, reaching the lowest since August 4. 

GBP/USD breaks above 1.2850

The slide of the greenback boosted GBP/USD that rose form 1.2820 to 1.2873, reaching a new 3-day high. The pair broke a strong resistance at 1.2840 and so far is holding on top of 1.2850 that is also an important technical level. 

A consolidation around current levels could open the doors to further gains and to a test of 1.2900. The next resistance could be seen at 1.2915/20 (Aug 18 & 21 high). If the pair is rejected and drops back under 1.2840, the bearish pressure is likely to rise sharply.