GBP/USD: Bulls headed to 1.3150 amid hopes for May’s new Brexit plan

• Reports of DUP backing UK PM May and improved risk tones boost the Sterling.
• Further upside opening up ahead of UK CBI realized sales and Fed’s Beige Book release.

The buying interest around the pound remains unabated, pushing the GBP/USD pair back towards the midpoint of the 1.31 handle as we head towards the early European trading.

GBP/USD trades above all major DMAs

The recent bullish momentum around the British pound gathered steam in early Asia following the reports that the Northern Irish Democratic Unionist Party (DUP) decided to privately agree to support UK PM May’s ‘Plan B’ Brexit Deal. The headlines offered fresh impetus to the bulls, now driving the Cable to the highest levels since November 2018 near 1.3130 region.

Meanwhile, the broad-based US dollar rally to multi-week highs lost legs amid improved risk tones, as the Asian equities advance alongside oil prices on conflicting reports over the US-China trade progress. Hence, the latest leg down in the greenback also collaborated to the upside in the spot. The USD index drops -0.20% to 96.40, extending the retreat from three-week tops of 96.68.

Looking ahead, the recent Brexit reports will continue to underpin the sentiment around the major while the risk trends will play a key driver amid a lack of first-tier macro releases from both the UK and the US docket today. The UK sees the BBA mortgage approvals and CBI realized sales data while the Fed’s Beige Book will be released later in the NA session.

GBP/USD Technical Levels