“¢ The pair rallied hard, taking out short-term trading stops placed near the 1.2930-35 region, after the EU’s chief negotiator Michel Barnier said that the EU wants to make a Brexit deal.
“¢ The momentum assisted the pair to finally break through a short-term descending trend-line hurdle, extending from June monthly high and 200-hour SMA on the 4-hourly chart.
“¢ The pair jumped to test 61.8% Fibonacci Expansion (FE) level of the 1.2662-1.2936 recent up-move, and subsequent retracement, and now seems poised to extend the momentum.
“¢ The pair might now aim towards reclaiming the key 1.30 psychological mark before eventually darting towards testing its next hurdle marked by 100% FE level.
GBP/USD 4-hourly chart
Spot Rate: 1.2968
Daily Low: 1.2845
Trend: Bullish
Resistance
R1: 1.2990 (R3 daily pivot-point)
R2: 1.3045 (50-day SMA)
R3: 1.3075 (100% FE level)
Support
S1: 1.2935 (important resistance break-point)
S2: 1.2900 (round figure mark)
S3: 1.2845 (current day swing low)
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