“¢ Renewed Brexit optimism helps the pair to build on overnight rebound.
“¢ Upbeat UK earnings data provides an additional boost to the Sterling.
The GBP/USD pair continued gaining traction through the mid-European session and is currently placed at fresh session tops, comfortably above the 1.3200 handle.
Comments by German European Union Minister Michael Roth, indicating possibilities of a Brexit deal, helped the pair to build on previous session’s goodish rebound from a weekly bearish gap on weekend Brexit deadlock.
The British Pound got an additional boost from stronger than expected UK average weekly earnings growth data, coming in to show that ex-bonus wage growth rose to a 9-year record of 3.1% 3m/y.
This coupled with a subdued US Dollar price action further collaborated to the pair’s strong positive momentum, taking along some short-term trading stops placed at the 1.3200 handle.
Meanwhile, the post-UK jobs data strong gains could further be attributed to some technical buying above 100-hour SMA and hence, a follow-through up-move, back closer to last week’s swing high, now looks a distinct possibility.
In absence of any major market moving economic releases from the US, any fresh Brexit-related news/developments might continue to influence the GBP price dynamics and turn out to be an exclusive driver of the pair’s momentum through Tuesday trading session.
Technical levels to watch
Any further up-move is likely to get extended towards 1.3235-40 supply zone, above which the pair is likely to aim towards reclaiming the 1.3300 handle. On the flip side, any meaningful retracement back below the 1.3200 handle now seems to find decent support near the 1.3145-40 region, which if broken might turn the pair vulnerable to slide back towards challenging the 1.3100 handle.
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