GBP/USD analysis: more Brexit optimism backing Pound

GBP/USD Current price: 1.3238

  • Sterling got another boost from another round of Brexit confidence.
  • USD weakness helped the pair reach a fresh 3-week high of 1.3246.

The GBP/USD pair held on to gains above the 1.3200 figure for most of this Thursday, peaking at 1.3246 a fresh 3-week high. There were no macroeconomic news coming from the UK that could affect Sterling, and the kingdom has nothing scheduled for this Friday.  Optimism a Brexit deal will be achieved ahead of the final divorce date remains high, getting a boost from a report indicating that UK PM May told her inner cabinet on Thursday that a historic Brexit deal was close. “The prime minister never brings the cabinet together to tell them what’s going on. That’s not her style. It feels to me like the deal is practically done,” said one official familiar with talks.

 The pair traded above the strong static Fibonacci support at 1.3175, the 50% retracement of the 2016/18 rally, and retains the positive technical stance, as, in the 4 hours chart, the 20 SMA has extended its advance below the current level, and above the 200 EMA, maintaining its upward slope. In the same chart, the Momentum heads north at overbought readings, while the RSI resumed its advance, currently at 67, all supportive of a bullish extension, moreover on a break above the mentioned daily high.

Support levels: 1.3175 1.3130 1.2990     

Resistance levels: 1.3245 1.3290 1.3330

View Live Chart for the GBP/USD

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