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GBP/USD climbs back closer to 2-month tops, eyeing 1.30 handle

   “¢   Decreasing likelihood of a no-deal Brexit continues to underpin the British Pound.
   “¢   Tuesday’s solid UK labor market report remained supportive of the positive move.
   “¢   BoE Deputy Governor Ben Broadbent’s speech eyed for some short-term impetus.

Having posted a session low level of 1.2942, the GBP/USD pair regained positive traction and has now moved within striking distance of two-month tops set last Friday.

The British Pound remains underpinned by growing market bets over decreasing likelihood of a chaotic Brexit and Tuesday’s solid UK labor market report, which might have strengthened the case a gradual policy tightening by the Bank of England (BoE).

Meanwhile, the US Dollar struggled to preserve/build on the overnight positive move, despite a modest pickup in the US Treasury bond yields and further collaborated to a follow-through up-move from the 1.2830 support area tested at the beginning of this week.  

The uptick, however, lacked any fresh catalysts and hence, it would be prudent to wait for a sustained move beyond the key 1.30 psychological mark before traders start positioning for any further near-term appreciating move amid absent relevant market moving economic releases.

In the meantime, a scheduled speech by the BoE Deputy Governor Ben Broadbent will be looked upon for some short-term trading opportunities and as Mario Blascak, FXStreet’s own European Chief Analyst writes: “the message for the markets will be expectedly clear voicing Brexit uncertainty as a major source of the economic slowdown.”

Technical outlook

“The technical oscillators including the Relative Strength Index and Slow Stochastics are both elevated with Slow Stochastics making the bearish crossover in the Overbought territory. The GBP/USD is facing a tough resistance at Fibonacci retracement at 1.2990 and failure on the upside is set to see GBP/USD testing 1.2900 before moving back to 1.2800-1.2900 range,” Mario adds.
 

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