GBP/USD holds near three-month tops above 1.3400 amid Brexit optimism

GBP/USD consolidates rally to three-month highs of 1.3440
Brexit deal, UK vaccine rollout likely this weekend.
US stimulus talks down the dollar, eyes on ADP jobs.

Dhwani Mehta FXStreet

GBP/USD looks to extend its bullish consolidative mode above 1.3400 into European trading, having hit three-month highs at 1.3440 amid renewed Brexit optimism and broad-based US dollar weakness.

The underlying narrative remains the same this Wednesday, with hopes for a Brexit deal and coronavirus vaccine distribution in the UK this weekend keeping the GBP bulls underpinned.

The pound jumped a big 70-pips against the greenback to the highest levels since September in the US last session after the Times Radio reported that “the UK-EU trade deal talks have, at long last, entered the mythical tunnel. Hopes (on both sides) of a deal by the end of this week.”

European Commission President Ursula von der Leyen also said that the trade talks between the UK and European Union (EU) are “so tricky and so difficult” but there could be a positive outcome in the next few days,” per Bloomberg.

Additionally, upbeat UK Final Manufacturing PMI for November combined with the broad US dollar slump bolstered the upside in the cable. The greenback tumbled to fresh two-and-a-half-year highs against its major rivals amid a renewal of the US fiscal stimulus talks, which sent Wall Street indices to fresh record highs.

Next of relevance for the major remains the incoming Brexit updates and stimulus news while the US ADP jobs data will be also closely eyed.

GBP/USD technical levels

GBP/USD

Overview
Today last price	1.3422
Today Daily Change	-0.0006
Today Daily Change %	-0.04
Today daily open	1.3427

Trends
Daily SMA20	1.3249
Daily SMA50	1.3066
Daily SMA100	1.3037
Daily SMA200	1.2733

Levels
Previous Daily High	1.3442
Previous Daily Low	1.3316
Previous Weekly High	1.3398
Previous Weekly Low	1.3264
Previous Monthly High	1.3398
Previous Monthly Low	1.2854
Daily Fibonacci 38.2%	1.3394
Daily Fibonacci 61.8%	1.3364
Daily Pivot Point S1	1.3348
Daily Pivot Point S2	1.3268
Daily Pivot Point S3	1.3221
Daily Pivot Point R1	1.3474
Daily Pivot Point R2	1.3521
Daily Pivot Point R3	1.3601

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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