GBP/USD: positive momentum on government deal
|GBP/USD Current price: 1.2744
The Pound is getting a vote of confidence, holding within positive territory against the greenback for a fifth consecutive day, following news confirming that UK PM May has sealed a deal with the Northern Irish DUP, for her minority government. The pair surged to 1.2759 at the beginning of the day, suffering a short-lived set-back that drove the price to a daily low of 1.2705 following the sudden gold decline. The recovery holds ahead of the US opening, helped by another batch of disappointing US data, as Durable Goods Orders fell by more than expected in May, while the Chicago manufacturing index came in at -0.26, worse than the 0.20 expected.
The pair trades near the mentioned daily high, presenting a positive tone intraday, as in the 4 hours chart, buying interest surged on an approach to a bullish 20 SMA, whilst technical indicators have resumed their advances within positive territory. Further gains beyond the mentioned daily high should favor an extension up to the 1.2800 region , where the 200 EMA will likely halt the advance.
Support levels: 1.2665 1.2635 1.2590
Resistance levels: 1.2745 1.2790 1.2830
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