GBP/USD climbs to fresh 2-week tops ahead of May’s meeting with Cabinet ministers

   “¢   The recent Brexit optimism continues to underpin the British Pound.
   “¢   The USD bulls hold on the defensive ahead of the midterm elections.
   “¢   May’s meeting with Cabinet ministers eyed for some fresh impetus.

The GBP/USD pair built on its positive momentum further beyond 100-day SMA and climbed to fresh two-week tops, around the 1.3085 region, in the last hour.  

The recent optimism over a possible Brexit deal by the end of the year continued underpinning the British Pound and was seen as one of the key factors driving the pair higher for the fourth session in the previous five.

The up-move seemed rather unaffected by the latest comments by the UK trade secretary Liam Fox, saying that there are still a number of Brexit issues that need to be dealt with and it is impossible to say if Brexit deal can be reached this month or next.

Meanwhile, the US Dollar held on the defensive mode ahead of the overhyped US midterm elections and remained supportive of the pair’s ongoing positive momentum to the highest level since Oct. 22.

In absence of any major market moving economic releases, either from the UK or the US, Tuesday’s vote in the US will play an important role in driving the near-term sentiment surrounding the greenback ahead of the latest FOMC monetary policy update on Thursday.  

In the meantime, any fresh headlines coming out of the UK PM Theresa May’s meeting with Cabinet ministers will influence the GBP price action and further collaborate towards producing some meaningful trading opportunities.

Technical levels to watch

Immediate resistance is pegged near the 1.3100 handle, above which the pair is likely to surpass the 1.3115-20 intermediate hurdle and aim towards testing its next barrier near mid-1.3100s. On the flip side, the 1.3050-40 region (100-DMA) now becomes an immediate support to defend, which if broken is likely to accelerate the fall back towards the key 1.30 psychological mark.