GBP/USD analysis: soft-Brexit perspectives fuel Pound
|GBP/USD Current price: 1.2726
The GBP/USD pair rallied pass the 1.2700 level for the first time since early October, ending the week at its highest for the month, at 1.2726. The Pound rallied on receding fears of a "hard Brexit" as authorities from the UK and the EU has softened their tone. David Davis, the Brexit Minister, said before the UK Parliament that the UK can pay into the EU budget to gain access to the single market, adding that the government is considering plans to allow low-skilled migration. More relevant, the Euro group President, Jeroen Dijsselbloem said that the EU may find a way for the UK to access the single market, although he remarked that "the new situation for the United Kingdom cannot be better or cheaper for them than it is for the countries within the EU." From a technical point of view, the pair is poised to continue advancing, given that in the daily chart, technical indicators head sharply higher within positive territory, whilst the price has advanced beyond a now bullish 20 SMA. In the shorter term, and according to the 4 hours chart, the risk remains towards the upside, as the RSI indicator heads south around 77, while the 20 SMA turned sharply higher below the current level, indicating a strong upward momentum. The pair has a strong static support in the 1.2770/80 region, with a break above it opening doors for a steeper recovery towards the 1.3000 region.
Support levels: 1.2690 1.2650 1.2610
Resistance levels: 1.2730 1.2775 1.2820
View Live Chart for the GBP/USD
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