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  • The recent Brexit optimism continues to underpin the British Pound.
  • Upbeat UK macro data provided an additional boost earlier this Monday.
  • Renewed USD weakness remained supportive amid empty US docket.

The GBP/USD pair maintained its strong bid tone through the early North-American session and is currently placed at fresh multi-week tops, comfortably above mid-1.2300s.
After Friday’s modest pullback and a subsequent slide below mid-1.2200s earlier this Monday, the pair managed to regain positive traction following the release of stronger-than-expected UK monthly GDP growth figures.

Upbeat UK data adds to Brexit optimism

In fact, the UK economy expanded 0.3% on a monthly basis in July, which coupled with an unexpected upturn in the UK manufacturing/industrial production for July provided a goodish lift to the British Pound and remained supportive.
The pair surpassed last Thursday’s swing high and was further supported by some renewed US Dollar weakness, despite the ongoing upsurge in the US Treasury bond yields and Friday’s upbeat comments by the Fed Chair Jerome Powell.
On the UK political front, the UK lawmakers will hold another vote on a motion on whether to hold an early election at some point in mid-October, though is not expected to pass and should continue to drive the pair higher.
Hence, a follow-through up-move, even beyond the 1.2400 round figure mark, now looks a distinct possibility amid the recent optimism over a softer Brexit and absent relevant market moving economic releases from the US.

Technical levels to watch