GBP/USD hits fresh multi-month tops, looks to extend momentum beyond 1.30 handle
|- Investors looked past rather uninspiring Brexit developments over the weekend.
- DUP’s Shannon said that they cannot support the customs union amendment.
The buying interest around the British Pound picked up some pace in the last hour and lifted the GBP/USD pair to fresh multi-month tops, around the key 1.30 psychological mark.
The pair initially edged lower at the start of a new trading week in reaction to the weekend development, wherein the UK Prime Minister Boris Johnson failed to win parliamentary backing for his divorce deal and the parliament delayed a crucial vote on the Brexit agreement.
Shannon’s comments provided a goodish lift
The downtick, however, turned out to be short-lived, rather was quickly bought into near the 1.2875 region. Meanwhile, the latest leg of a sudden spike over the past hour or so came after DUP MP Jim Shannon said that they cannot support customs union amendment.
Given that Labour was said to form an alliance with the DUP over this issue, the comments were seen as good news for the government and helped bulls shake off concerns that came about during the weekend and provided a goodish lift to the British Pound.
It will now be interesting to see if bulls are able to capitalize on the positive momentum or the pair continues with its struggle to build on/sustain above the 1.30 handle. Monday's key risk be Commons speaker John Bercow's decision to allow a meaningful vote on the Brexit deal.
Technical levels to watch
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