GBP/USD: Bulls attack 1.3300 as Brexit optimism joins virus treatment hopes

GBP/USD refreshes intraday high to 1.3298 during the initial Asian session on Monday. The pair recently gained bids as the market turns optimistic concerning the Brexit deal and the coronavirus (COVID-19) vaccine. However, challenges to the Fed’s emergency programs and the rising virus figures in the northern hemisphere challenge the pair bulls.

Brexit deal not at any cost…

The UK Times cites an anonymous British government source to suggest that there are increasing expectations of a deal. The Sky follows the suit while citing the European Union’s (EU) side while indicating 95% chances of a Brexit deal. However, the piece also mentioned increased uncertainty over the key issues like fisheries, governance and competition rules that highlight the anxiety.

On the other hand, The Guardian quotes UK Finance Minister Rishi Sunak to probe the bulls while highlighting the British government’s readiness to step back from the deal if it’s not in their favor. The diplomat said, per the news, “We should not be going for a deal at any price, that would be the wrong thing to do and I think there are things that are important to us in these negotiations, and we’ve been entire, as I said, reasonable, consistent and transparent.”

Also on the negative side are the fears that the US Federal Reserve (Fed) will soon have to hand over $500 billion of emergency program funds to Treasury Secretary Steve Mnuchin.

Elsewhere, virus treatments are battling the risk-off mood. The Telegraph came out with the news suggesting that Pfizer will soon get approval from the UK government for its COVID-19 vaccine whereas Regeneron’s antibody treatment gets a go from the US Food and Drug Administration (FDA). It should also be noted that chatters surrounding a gradual easing of the covid-led activity restrictions also favor the GBP/USD bulls off-late.

Against this backdrop, S&P 500 Futures mark 0.10% intraday loss by press time.

Moving on, GBP/USD traders will pay close attention to the preliminary readings of November month PMI data for fresh impetus. Though, this doesn’t dim the importance of virus, vaccine and Brexit updates.

Technical analysis

A clear break above the monthly high near 1.3315 becomes necessary for the bulls before challenging the yearly top of 1.3482. Meanwhile, a 10-day SMA near 1.3240 offers immediate support to watch during the quote’s pullback moves.