- Brexit optimism continues to underpin the British Pound on Friday.
- Sustained move beyond 1.2370-80 region aggravates the up-move.
- Bulls are likely to aim towards reclaiming the 1.2500 round figure.
The GBP/USD pair finally broke out of its three-day-old consolidative trading range and climbed further beyond the 1.2400 round figure mark for the first time since July 26. The overnight rumours, indicating that the EU is prepared to grant another Brexit extension to the UK, continued underpinning the British Pound and provided a goodish lift.
Given the overnight bounce from 200-hour EMA, a sustained move beyond the 1.2370-80 supply zone was seen as a key trigger for bullish traders and the latest leg of a sudden pick up during the early European session on Friday. Meanwhile, bullish oscillators on the daily chart further support prospects for an extension of the recent strong up-move.
However, slightly overbought conditions on the 1-hourly chart might turn out to be the only factor holding investors from placing any aggressive bullish bets and keeping a lid on any further appreciating move. Hence, any subsequent up-move seems more likely to confront some intermediate resistance near the 1.2435-40 region.
A sustained breakthrough the mentioned hurdle will further reinforce the near-term constructive outlook and set the stage for a possible move towards reclaiming the key 1.2500 psychological mark. On the other hand, any pullback might now attract some dip-buying interest near the 1.2380-70 resistance breakpoint, now turned support.
GBP/USD 1-hourly chart