“¢ The recent recovery picks up the pace amid notable USD supply.
“¢ Positive Brexit comments provided an additional boost to the GBP.
“¢ Technical buying above 200-DMA remained supportive of the up-move.
The GBP/USD pair built on its strong intraday positive momentum further beyond the key 1.30 psychological mark and climbed to near two-week tops during the early North-American session.
The pair built on its steady rebound from over two-month lows set last Thursday and continued gaining positive traction for the third consecutive session on Tuesday. The recovery picked up the pace since the early European session and was further supported by a fresh wave of US Dollar selling bias amid firming expectations that the Fed will stick to its cautious stance.
The British Pound got an additional boost following some optimistic comments by the UK PM Theresa May’s spokesman, saying that talks with Labour party have been serious and constructive. This coupled with possibilities of some short-term trading stops being triggered on a sustained move above a previous support break-point (200-DMA), now turned resistance near the 1.2965-70 region, further collaborated to the pair’s strong intraday upsurge.
Currently trading around the 1.3020 region, market participants now look forward to the US economic docket – featuring the release of Chicago PMI, the Conference Board’s consumer confidence index and pending home sales data, for some short-term trading impetus ahead of this week’s other important event/data risks from the UK and the US.
Technical levels to watch
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