- DXY extends the upside.
- Some ray of hope on the Irish border issue.
- The US payrolls data holds the key.
The GBP/USD pair extended its overnight side trend into Asia, as the bulls consolidate yesterday’s solid rebound awaiting the outcome on the Irish border issue, as the UK PM May heads to Brussels to finalize Irish border deal.
GBP/USD: Risk-on underpins
The spot holds well above the midpoint of 1.34 handle and looks poised to regain 1.35 handle, as the bulls cheer a great amount of progress been made on the Irish border deal, with an Irish official citing that Ireland and Britain were 'very close' and seemingly a matter of hours away from a Brexit deal.
Moreover, persisting risk-on trades, reflected by a rally in the Asian equities also keeps the sentiment buoyed around the risk currency GBP. However, over the last hours, the major remains confined in a tight trading range, as broad-based US dollar strength on the back of reports that the US House approves the Federal funds to avert a government shutdown.
Ahead of the UK PM May’s meeting with the EU’s Juncker and Tusk on the Irish border deal, the focus will remain on the UK industrial and manufacturing production data for fresh impetus. Also, the US payrolls data will be closely eyed for fresh direction on the buck ahead of next week’s FOMC meeting.
GBP/USD Technical Levels
According to Valeria Bednarik, Chief Analyst at FXStreet: “The pair is currently trading around the 23.6%% retracement of the latest bullish run, after piercing late Thursday the 61.8% retracement of the same rally at 1.3345. In the 4 hours chart, the price is above a bullish 20 SMA, while technical indicators corrected from near oversold territory, regaining now the upward strength. Support levels: 1.3445 1.3390 1.3345. Resistance levels: 1.3485 1.3520 13550.
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