GBP/USD rallies to a fresh month-high on delayed Brexit hopes

• GBP/USD rose to the fresh high of the month around 1.3150 at the start of Tuesday.
• The pair benefited from the news report that the UK PM will formally propose no-deal Brexit.
• Quarterly Inflation report hearings will become additional catalysts for traders to observe.

The GBP/USD pair is taking the bids around 1.3120 during initial Asian sessions on Tuesday. The pair rose to a fresh high of the month on the news report that the UK PM will propose formally ruling out no deal Brexit. With the recent increase in a number of clues favoring no deal Brexit, the British Pound (GBP) is on recovery mode against the majority of its counterpart.  

On Monday, the GBP/USD pair, also known as Cable, recovered on the news that some among the EU leaders are ready to extend the Brexit date from March 29 till the year 2021. The pair added gains afterward as leader of the opposition Labour party Jeremy Corbyn is likely to propose second Brexit referendum while also supporting “no deal” Brexit off the table.

At the start of Tuesday’s Asian trading, The Sun reported that the UK PM Theresa May is likely to propose formally ruling out a no-deal Brexit, which in turn could delay the British departure from the EU beyond March 29 deadline.

With the recent reports coming in favor of a soft/delayed Brexit, the GBP traders will be closely observing statements from the British political fraternity for confirmation of an on-going trend.  

It should also be noted that today’s quarterly Inflation report hearings by the Bank of England (BoE) Governor Mark Carney and monetary policy committee (MPC) members will also offer intermediate moves to the GBP traders.

GBP/USD Technical Analysis

GBP/USD needs to surpass 1.3160 in order to challenge the trend-line resistance connecting September-January high, at 1.3200.

On the flip side, the pair’s break of 1.3100 can drag it back to 1.3060 and 1.3000 supports.