GBPUSD Outlook: Strong bullish sentiment on upbeat UK earnings, positive Brexit news

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable holds firm tone ahead of US session on Monday and hit new high at 1.3230.
Extension of two-day recovery from Monday’s low at 1.3083 (posted after Brexit talks stalled over the weekend) showed 147-pips advance and is establishing above 1.32 barrier.
Sterling was inflated by better than expected UK earnings data (Aug 2.7% vs 2.6% f/c / prev) while earnings excluding volatile bonuses rose by 3.1% in three months to Aug, overshooting forecast for 2.9% rise, in the highest increase since 2009.
Strong earnings data support hawks advocating for BoE rate hike in Feb.
Positive tones about Brexit were heard on Tuesday, as France expressed its confidence that Brexit deal could be reached in the near future.
Break above 1.32 handle eyes 1.3257 (12 Oct high) violation of which would expose key barriers at 1.3297 (20Sep high) and 1.3316 (Fibo 61.8% of 1.4376/1.2661 fall).

Res: 1.3230; 1.3257; 1.3297; 1.3316
Sup: 1.3216; 1.3191; 1.3170; 1.3139

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3293
2. R2 1.3238
3. R1 1.3195
PP 1.314
1. S1 1.3097
2. S2 1.3042
3. S3 1.2999

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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