GBP/USD: Bulls tested 1.3100 on increased odds of Brexit delay

Bulls consolidate the rally to 2-month tops, focus on Brexit news.
Technical set up points to further upside bias, a break above 1.3100 inevitable.

Dhwani Mehta FXStreet

The GBP/USD pair extended its rally into a fourth day in Thursday’s Asian trading and hit fresh two-month tops of 1.3096 amid a potential Brexit delay that continues to underpin the sentiment around the pound.

Meanwhile, the reports that 20 Remain ministers secretly met in Parliament to discuss plans to stop a no-deal Brexit fuelled fresh demand for the GBP across the board. However, the bulls lacked follow-through momentum, sending the rates back near 1.3075 region, as markets trade cautiously amid looming US-China trade worries and ahead of the Senate votes on the re-opening of the government shutdown later today.

On Wednesday, the Cable rallied nearly 140 pips to 1.3081, its highest levels since November. “The catalyst for Sterling's rally was a new amendment coming from Yvette Cooper, which already gathered support from MPs from different parties, aimed to buy the kingdom sometime to prepare an alternative plan if PM May's deal fails to pass the Houses,” Valeria Bednarik, FXStreet’s Chief Analyst noted.

Meanwhile, markets digest the latest comments by the BOE Chief Economist Haldane heading into a data-quiet UK docket. Hence, the focus remains on the no deal Brexit-related headlines and the US macro news for fresh trading incentives.

GBP/USD Technical Levels

GBP/USD

Overview:
    Today Last Price: 1.3072
    Today Daily change: 0.0000 pips
    Today Daily change %: 0.00%
    Today Daily Open: 1.3072
Trends:
    Daily SMA20: 1.2807
    Daily SMA50: 1.2752
    Daily SMA100: 1.2894
    Daily SMA200: 1.3073
Levels:
    Previous Daily High: 1.3081
    Previous Daily Low: 1.2941
    Previous Weekly High: 1.3002
    Previous Weekly Low: 1.2668
    Previous Monthly High: 1.284
    Previous Monthly Low: 1.2477
    Daily Fibonacci 38.2%: 1.3028
    Daily Fibonacci 61.8%: 1.2995
    Daily Pivot Point S1: 1.2982
    Daily Pivot Point S2: 1.2891
    Daily Pivot Point S3: 1.2842
    Daily Pivot Point R1: 1.3122
    Daily Pivot Point R2: 1.3172
    Daily Pivot Point R3: 1.3262

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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