“¢ Trade war fears-led USD weakness supports the ongoing up-move.
“¢ Reemerging Brexit concerns does little to prompt any GBP selling.
“¢ Technically, the pair seems poised to extend the bullish momentum.
The GBP/USD pair continued scaling higher for the third consecutive day and jumped to over two-week tops, beyond mid-1.3400s in the last hour.
A fresh wave of US Dollar selling emerged during the early European session and was seen as one of the key factors pushing the pair higher. Lingering concerns over a full-blown trade war between the US and its close allies kept exerting downward pressure on the greenback and remained supportive of the pair’s up-move for the sixth session in the previous seven.
The bullish move seemed unaffected by the latest Brexit concerns, where in the UK’s two biggest political parties acknowledged on Wednesday that they remain deeply divided over post-Brexit trade and customs arrangements.
Investors also seemed to have shrugged off rumors that Brexit Secretary David Davis could quiet over the issue of UK PM Theresa May’s plan to keep a close tie to the EU’s customs rules for an open-ended period of time, with the USD price-dynamics turning out to be an exclusive driver of the pair’s up-move to the highest level since May 22nd.
From a technical perspective, a follow-through up-move would point to a fresh bullish breakthrough a short-term ascending trend-channel formation on 1-hourly charts and should pave the way for an extension of the upward trajectory.
Technical levels to watch
Any subsequent up-move now seems to confront resistance near the key 1.3500 psychological mark, above which the momentum could get extended towards 1.3540-45 intermediate resistance en-route the 1.3600 handle.
On the flip side, any meaningful retracement now seems to find support near the 1.3435-30 region, which if broken might prompt some additional weakness and drag the pair back towards the 1.3400 handle.
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