“¢ The latest Brexit optimism continues to underpin the British Pound.
“¢ A subdued USD price action remains supportive of the positive move.
The GBP/USD pair extended its steady intraday climb through the mid-European session and is currently placed at the top end of its daily trading range, around mid-1.2800s.
The British Pound caught some fresh bids on the first trading day of the week and was supported by the latest Brexit optimism, following a formal approval of the Brexit withdrawal agreement and the political declaration on the future EU-UK relations during the special EU summit on Sunday.
The positive momentum seemed rather unaffected by the UK Brexit Secretary Stephen Barclay’s comments, saying that it will be a tough task to get the Brexit deal past parliament. A failure could trigger a leadership challenge on the UK PM Theresa May and also lead the UK leaving the EU without a deal.
As Mario Blascak, FXStreet’s own European Chief Analyst explains – “The European Commission President Jean-Claude Juncker was aware of the fragile position of Theresa May and after the weekend Brexit summit he warned the UK members of parliament saying that “those who think that, by rejecting the deal, they would get a better deal, will be disappointed.”
Meanwhile, a subdued US Dollar price action though did little to influence the price-action, coupled with the prevalent risk-on mood remained supportive of the up-move amid absent relevant market moving economic releases, either from the UK or the US.
Technical outlook
Mario Blascak further added: “The Momentum and the Relative Strength Index both remain in the neutral zone and the Slow Stochastics made a bullish crossover in the oversold territory. Together with the golden cross of a 50-day moving average crossing over a 100-day moving average to the upside, the indicators are pointing rather to the upside for GBP/USD. The GBP/USD needs to break above 1.3000 to signal a trend reversal targeting 1.3060 before moving to 1.3380 and 1.3460 important Fibonacci level.”
Share
