GBP/USD: Bulls tested 1.3100 on increased odds of Brexit delay

• Bulls consolidate the rally to 2-month tops, focus on Brexit news.
• Technical set up points to further upside bias, a break above 1.3100 inevitable.

The  GBP/USD  pair extended its rally into a fourth day in Thursday’s Asian trading and hit fresh two-month tops of 1.3096 amid a potential Brexit delay that continues to underpin the sentiment around the pound.

Meanwhile, the reports that 20 Remain ministers secretly met in Parliament to discuss plans to stop a no-deal Brexit fuelled fresh demand for the GBP across the board. However, the bulls lacked follow-through momentum, sending the rates back near 1.3075 region, as markets trade cautiously amid looming US-China trade worries and ahead of the Senate votes on the re-opening of the government shutdown later today.

On Wednesday, the Cable rallied nearly 140 pips to 1.3081, its highest levels since November. “The catalyst for Sterling’s rally was a new amendment coming from Yvette Cooper, which already gathered support from MPs from different parties, aimed to buy the kingdom sometime to prepare an alternative plan if PM May’s deal fails to pass the   Houses,” Valeria Bednarik, FXStreet’s Chief Analyst noted.

Meanwhile, markets digest the latest comments by the BOE Chief Economist Haldane heading into a data-quiet UK docket. Hence, the focus remains on the no deal Brexit-related headlines and the US macro news for fresh trading incentives.

GBP/USD Technical Levels