The GBP/USD currency pair flashed green and hit the multi-month high around 1.2554 level, mainly due to the fresh optimism about Brexit talks. The hopes of further support from the UK Tory Government to fight the COVID-19 pandemic also exerted some bullish impact on the Sterling and contributed to the currency pair's gains.
At this particular time, the GBP/USD currency pair is currently trading at 1.2536 and consolidating in the range between 1.2478 and 1.2554. However, the traders are keenly awaiting the final round of Brexit talks, which is scheduled to start today.
The news from the Times suggested that there will be no more delay in the Brexit story, which pushed the British Pound higher. As well as, the same source indicated that the U.K. policymakers were showing a willingness to compromise on fisheries and 'level playing field' trade rules only if the European Union decrease its uncompromising demands. Despite this, both sides have not expressed any major agreeability on the Brexit terms, and investors were still cautious ahead of the final round of detailed talks.
As per the Guardian quoted, the YouGov survey suggested that the public's trust in the UK Tory government performance in the coronavirus handling has fallen, which also exerted some downside pressure on the British Pound earlier in the day.
The earlier declines in the currency pair were bolstered by the broad-based U.S. dollar bullish bias caused by protests against the alleged killing of Minnesota's George Floyd, which recently led to the curfew in New York. The uptick in the U.S. dollar could also be attributed to the Chinese government's announcement to stop the purchases of American soybeans and other U.S. agricultural goods. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies gained 0.06% to 97.875 by 11:31 AM ET (4:31 GMT).
Looking forward, the market participants will keep their eyes on the week-long Brexit negotiations for new details. As well as, the updates concerning the protests in the U.S., and the US-China tussle will also be essential to watch.
Daily Support and Resistance
- S1 1.2194
- S2 1.2326
- S3 1.2409
Pivot Point 1.2458
- R1 1.254
- R2 1.2589
- R3 1.2721
On the technical side, the GBP/USD pair is heading north on the back of the weaker U.S. dollar. The Cable has already violated the intraday pivot point resistance level of 1.2450 level, and the continuation of a bullish trend may lead the GBP/USD prices further higher towards the triple top target level of 1.2635. Bullish crossover of 1.2635 level may lead the GBP/USD prices further higher until 1.2815 level. Closing of Three White Soldiers on the 4-hour chart is also supporting the bullish bias and may drive more buying in the Cable. We should look for buying until the next target level of 1.2635 today. Good luck!