- Cable surpasses the 1.2900 handle, session peaks.
- Leaked draft says the transition period could be extended for 1-2 years.
- There is no mention of ‘Gibraltar’ on the draft.
GBP/USD is moving higher and trades above to the critical 1.2900 handle following a leaked Brexit deal.
GBP/USD in multi-day tops
The now better tone in the Sterling is pushing Cable to fresh multi-day peaks in the area above 1.2900 the figure on Thursday, up more than a cent from daily lows in the 1.2770 zone.
In fact, the Sterling grabs extra buying interest after the publication of a leaked Brexit deal draft. The leaked draft says the UK commits to align with EU rules on trade of goods, while both parties could consider technological solutions to prevent the ‘hard border’.
In addition, the draft also sees the probability that the ‘transition period’ could be extended for up to 1 or 2 years.
GBP/USD levels to consider
As of writing, the pair is up 1.08% at 1.2915 facing the next hurdle at 1.3006 (100-day SMA) seconded by 1.3015 (55-day SMA) and then 1.3074 (high Nov.14). On the other hand, a breach of 1.2724 (low Nov.15) would open the door to 1.2696 (low Oct.30) and finally 1.2662 (2018 low Aug.15).
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