GBP/USD hits fresh highs near 1.3200 following UK PM May comments

Pound rises following PM May remarks about a possible general election.
GBP/USD broke to the upside after trading sideways during most of the US session.

The GBP/USD pair gained momentum late during the US session and broke above 1.3175, hitting at 1.3192 a fresh daily high. Cable extended gains and is on its way for the second daily rise in a row.

The pound rose across the board following comments from UK PM May from New York. She is confident of keeping to Brexit timetable and mentioned that a general election is not “in national interests.” Her words boosted modestly the pound that printed fresh high versus the US dollar and also the euro.

Cable is about to end the day with a gain of 70 pips, holding slightly below 1.3200 but still far from last week highs. The rebound that started on Monday, eased bearish pressures. The key driver of GBP continues to be Brexit concerns while regarding the US dollar, Fed’s decision and projections tomorrow could have a significant impact.

Technical outlook and levels to watch

“The GBP/USD pair is up for a second consecutive day, struggling to regain ground above the 50% retracement of the 2016/18 rally. The pair recovered some of its bullish stance as, some follow-through from here is required, the 4 hours chart shows that the price is now holding above its 20 SMA, while the Momentum indicator heads sharply higher above its 100 level, as the RSI also entered positive ground but to currently consolidate at around 55”, say Valeria Bednarik, Chief Analyst at FXStreet.

According to her, the September 19 high at 1.3214 is the next relevant resistance with gains above it most likely favoring a steeper recovery.

Share: Feed news

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.