GBP/USD continues its ascent, trades above 1.23

The rise in the GBP/USD pair continues with the pair now trading around 1.2315 levels on speculation that UK may avoid ‘Hard Brexit’ after PM Theresa May accepted a Parliamenty vote over her Brexit plans.

Hourly 50-MA is not a support

The latest hourly candle closed above the 1-hr 50-MA level of 1.2311 thus making an old resistance a new support. Cable was offered to a low of 1.2089 levels yesterday on ‘Hard Brexit’ fears and amid broad based US dollar gains.

However, shorts squeeze gathered pace in Asia on speculation that the outcome of a parliamentary vote onm PM May’s Brexit plans would provide her more toom to negotitate better deals with UK counterparts. The technical correction may continue in Europe and US unless we have fresh newsflow pointing to ‘Hard Brexit’

GBP/USD Technical Levels

A break above immediate resistance of 5-DMA level of 1.2369 would open doors for 1.24, above which the pair could target 1.2610 (10-DMA). On the other hand, a breakdown of support at 1.2311 (hourly 50-MA) would expose 1.2259 (50% of Friday’s drop) and 1.22 (zero figure).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.