GBP/USD hits fresh highs near 1.3200 following UK PM May comments
|- Pound rises following PM May remarks about a possible general election.
- GBP/USD broke to the upside after trading sideways during most of the US session.
The GBP/USD pair gained momentum late during the US session and broke above 1.3175, hitting at 1.3192 a fresh daily high. Cable extended gains and is on its way for the second daily rise in a row.
The pound rose across the board following comments from UK PM May from New York. She is confident of keeping to Brexit timetable and mentioned that a general election is not “in national interests.” Her words boosted modestly the pound that printed fresh high versus the US dollar and also the euro.
Cable is about to end the day with a gain of 70 pips, holding slightly below 1.3200 but still far from last week highs. The rebound that started on Monday, eased bearish pressures. The key driver of GBP continues to be Brexit concerns while regarding the US dollar, Fed’s decision and projections tomorrow could have a significant impact.
Technical outlook and levels to watch
“The GBP/USD pair is up for a second consecutive day, struggling to regain ground above the 50% retracement of the 2016/18 rally. The pair recovered some of its bullish stance as, some follow-through from here is required, the 4 hours chart shows that the price is now holding above its 20 SMA, while the Momentum indicator heads sharply higher above its 100 level, as the RSI also entered positive ground but to currently consolidate at around 55”, say Valeria Bednarik, Chief Analyst at FXStreet.
According to her, the September 19 high at 1.3214 is the next relevant resistance with gains above it most likely favoring a steeper recovery.
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