News

GBP/USD pushes higher toward 1.35 on Brexit headlines

  • UK and Ireland close in on a Brexit border deal.
  • GBP/USD stretches upside to a fresh 3-day high.
  • DXY stays quiet in the positive territory.

The GBP/USD pair built on its recent gains and advanced to 1.3485 on the back of the recent developments surrounding the Brexit negotiations. As of writing, the pair was trading at 1.3480, gaining 0.65%, or 85 pips, on the day.

Irısh border deal close to being finalized

Earlier today, British Prime Minister Theresa May delivered an updated offer in order to solve the border dispute with Ireland. Reuters, citing an Irish official, recently reported that Britain and Ireland were very close to reaching a border deal. In fact, the official reportedly said it was only a matter of hours. On the other hand, Bloomberg on Thursday reported that the U.K. and the EU have reached a deal on a future role for the European Court of Justice in British legal cases after Brexit.

These two unresolved issues mentioned above were the primary reasons behind Monday's failure of reaching an early deal. Now with both of these problems seemingly going away, a Brexit deal could be reached ahead of next week's December 14-15 summit. 

In the meantime, ahead of tomorrow's critical NFP report, the US Dollar Index is holding onto modest daily gains, making it difficult for the pair to extend its gains for the time being. At the moment, the index is up 0.17% on the day at 93.70. 

Technical outlook

The pair could encounter the first technical resistance at 1.3500 (psychological level) ahead of 1.3540 (Dec. 4 high) and 1.3630 (Sep. 20 high).On the downside, supports could be seen at 1.3320 (daily low), 1.3250 (50-DMA) and 1.32 (100-DMA/psychological level).