GBP/USD surges through 1.2500 handle, refreshes weekly tops
|- Some cross-driven strength triggers the initial leg of short-covering bounce.
- A modest USD pullback from multi-week tops provides an additional boost.
- Possibilities of some intraday stops being triggered accelerate the up-move.
The GBP/USD pair surged through the key 1.2500 psychological mark and refreshed weekly tops in the last hour.
After an early European session dip, the pair witnessed a dramatic turnaround and has now rallied nearly 100-pips from intraday lows around the 1.2425 region. The initial leg of recovery was triggered by some cross-driven strength, stemming out of a sharp intraday slide in the EUR/GBP cross.
The uptick got an additional boost in the wake of a modest US Dollar pullback from five-week tops, which coupled with possibilities of some intraday stops being triggered on a sustained move beyond the overnight swing high - around the 1.2480-85 region, aggravated the short-covering bounce.
It, however, remains to be seen if the recovery is backed by any genuine buying or is solely fueled by short-covering, which runs the risk of fizzling out rather quickly amid persistent fears of a no-deal Brexit and absent relevant market moving economic releases from the UK.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.