GBP/USD surges beyond mid-1.2900s, highest since mid-May on news that a Brexit deal has been reached
|The GBP/USD pair quickly reversed an intraday dip and surged passed the 1.2900 handle, refreshing multi-month tops during the early European session.
Following the previous session's goodish positive move of over 200 pips and a late modest pullback from the highest level since mid-May, the pair came under some selling pressure during the early part of Thursday's trading action in the wake of some negative Brexit headlines.
The Northern Irish Democratic Unionist Party (DUP) expressed its discontent with several points in the Brexit deal that the UK and the EU are finalizing. This was seen as making it difficult for the UK Prime Minister Boris Johnson to get the Brexit deal passed through the Parliament and eventually exerted some pressure on the British Pound.
The intraday downfall, however, turned out to be short-lived, rather was quickly bought into near mid-1.2700s following some positive comments by the German chancellor Angela Merkel, reiterating that an agreement on a Brexit deal is still possible.
Meanwhile, the latest leg of a sudden upsurge over the past hour or so could further be attributed to news that a Brexit deal has been struck. The news was confirmed by the EU President Jean-Claude Junker and now paves the way for Britain's exit from the European Union on October 31.
Technical levels to watch
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