“¢ Reuters’ headlines indicate that Brexit divorce deal is ‘very close’.
“¢ Subdued USD price action remains supportive of the positive move.
“¢ Today’s key focus will remain on the closely watched NFP report.
The GBP/USD pair quickly reversed an early dip to the 1.30 neighborhood and rallied around 50-pips in the last hour.
The latest leg of a sudden spike could be attributed to positive Brexit headlines. Reuters, citing unnamed European Union (EU) diplomatic sources, reported that the EU Brexit negotiators believe that divorce deal with Britain is ‘very close’.
This coupled with a subdued US Dollar price action remained supportive of the goodish up-move for the second consecutive session, though the positive momentum now seemed running out of steam near 50-day SMA, near mid-1.3000s.
It would now be interesting to see if bulls are able to maintain their dominant position or restrain from placing any aggressive bets ahead of today’s key event risk – the closely watched US monthly jobs report, popularly known as NFP.
Technical levels to watch
On a sustained move beyond mid-1.3000s, the pair is likely to aim towards testing the 100-day SMA barrier near the 1.3100 handle. On the flip side, the 1.30 handle now becomes an immediate support to defend, which if broken might turn the pair vulnerable to slide further towards the 1.2935-30 strong horizontal support.
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