GBP/USD advances beyond 1.31 as USD selloff intensifies

• US Dollar Index slumps below 97 during American session. 
• GBP/USD adds more than 100 pips on Friday.
• ECB's Holzmann says there is little time for Brexit negotiations.

The GBP/USD pair broke above the 1.3000 handle earlier in the day and continued to rise steadily throughout the day on Friday supported by the broad-based selling pressure surrounding the USD. With the greenback facing a fresh selling pressure during the American session, the pair extended its rally and touched its highest level since December 19th at 1.3118.

As of writing, the pair is trading at 1.3093, adding 0.77% on a daily basis. After losing more than 300 pips last week, the pair now looks to close the week around 100 pips higher. 

Persistent USD weakness lifts GBP/USD

The US Dollar Index, which tracks the greenback's performance against a basket of six major currencies, turned south on Thursday and dropped below the 97 mark on Friday for the first time in more than ten days. Although there were no fundamental drivers present behind the USD's valuation, the upbeat market mood seems to be weighing on the relatively safer buck.

Reflecting the positive sentiment, Wall Street's main indexes started the day at fresh all-time highs. Following the last leg lower, the index recovered modestly and was last down 0.5% on the day.

In the meantime, European Central Bank policymaker Robert Holzmann earlier in the day argued that there was little time for Brexit negotiations with the UK and added that the concern could grow toward the end of the year in 2020.

Technical levels to watch for