Breaking: GBP/USD surges past 1.31 as Brexit talks set to officially resume

Yohay Elam FXStreet

Brexit talks are set to formally restart with an aim to reach a deal by mid-November. Calls between London and Brussels have been held earlier this week, seeking a path to reignite and intensify talks.

Last week, Prime Minister Boris Johnson told the nation to prepare for a no-trade-deal Brexit after EU leaders refrained from ceding ground nor agreeing to ramp up the pace of negotiations. Since then, the mood has changed.

Hopes for a fiscal stimulus deal in Washington are also contributing to cable's advance. The safe-haven dollar is coming under pressure.

GBP/USD has been rising ahead of the news, but burst significantly higher and hits 1.3139, the highest since September.

Here is how sterling's move looks on the four-hour chart. The Relative Strength Index is above 70, thus at overbought conditions. Momentum remains to the upside.

More GBP/USD Forecast: Sterling set on breaking double-top as dual talks extend

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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