GBP/USD analysis: possible better-than-suspected post-Brexit deal boosts the Pound

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3956

The GBP/USD pair holds on to strong gains ahead of key UK data later this week.
Comments from French President Macron underpinned Pound, dollar´s weakness helped.

The British Pound soared against the greenback to a new high since June 2016 of 1.3969, getting a boost from some encouraging headlines pointing to a better trade deal with the EU post-Brexit. Comments from French President Macron underpinned the Sterling, by saying that the UK should get a better deal than a plain agreement between two independent countries after Brexit, although acknowledging that it could not have the same benefits as an Union member. The UK calendar will offer some minor figures this Tuesday, with more relevant news on employment and GDP later in the week. The GBP/USD pair retreated on headlines indicating that US Senate could vote late Monday on a temporal funding bill, but holds on to strong daily gains not far below the mentioned high. Technically, the bullish strength remains intact despite the absence of upward momentum, as in the 4 hours chart, the pair bounced sharply from a bullish 20 SMA after spending the day holding around it, while indicators turned marginally lower, still holding within positive territory. Speculative interest seems determine to test the 1.4000 level and even attempt to extend gains beyond it, despite extreme overbought conditions present in bigger time frames.

Support levels: 1.3800 1.3770 1.3735

Resistance levels: 1.3865 1.3900 1.3945

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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