GBP/USD analysis: hopes around Brexit keep boosting the Pound

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3212

The DUP privately agreed to support UK PM's May plan B.
The UK Parliament is set to vote another round of amendments this Tuesday.

Dollar's broad weakness helped the GBP/USD pair advance beyond the 1.3200 level, its highest since last October. The Sterling was already the greenback's strongest rival, as a UK newspaper reported that the Northern Irish Democratic Union Party decided to privately agree to support UK PM May’s Plan B Brexit deal, accepting a backstop s long as it's specifically time limited. Later in the day, Conservative Party's leader of the House of Commons Andrea Leadsom stated that the date of departure, so far, March 29, could be pushed back a couple of weeks, to give the UK time to approve legislation. The UK Parliament will discuss this Tuesday another series of amendments to try achieving an orderly Brexit. There's no data scheduled in the UK for this Monday, although BOE's Governor Carney will participate in a question and answer session, along with other MPC members, about the future of money at the Bank of England's Future Forum, in London.

Trading at its highest in over three months, the GBP/USD pair is bullish according to technical readings in the daily chart, as it settled well above its 200 EMA, above it for the first time since April last year. In the mentioned chart, the 20 DMA maintains its bullish slope well below the current level as technical indicators head firmly up, entering overbought territory. Shorter term and according to the 4 hours chart, the pair is also poised to extend its advance, as despite technical indicators lost their upward strength, hold consolidating in overbought readings, as a sharply bullish 20 SMA keeps advancing above the 200 EMA, now at 1.3050.

Support levels: 1.3165 1.3130 1.3090

Resistance levels: 1.3220 1.3260 1.3300

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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