GBP/USD looking to firm up over 1.30 ahead of UK earnings

Sterling bulls reaching for higher levels on Brexit headlines.
UK Average Earnings figures due later today, could derail Brexit push if expectations get missed.

Joshua Gibson FXStreet

The GBP/USD is heading north and grinding it out towards 1.3050 ahead of London's Tuesday market session as Sterling bulls continue to ride a train of bullish headlines surrounding Brexit.

Eurosceptic Tories in the UK Parliament are in full retreat today after The Financial Times broke news that their attempt to produce their own version of what should happen to the UK following Brexit came apart at the seams. Jacob Rees-Mogg, head of the pro-Brexit European Research Group which is heavily populated by pro-Brexit Conservative MPs stated that the group had "reconsidered" their proposal which was expected to be released today.

Headlines have been leaking over recent days that the EU is slowly rolling over into a position that will make it easier for the UK to negotiate a successful trade deal, and Pound bulls have been seizing on the good news and pumping up the GBP on Brexit hopes for the second time in two weeks, and Tuesday sees another iteration of the UK's q/y Average Earnings at 08:30 GMT, which are expected to tick upwards from 2.7% to 2.8%.

GBP/USD levels to watch

Pound bulls are looking to firm up for another push above the 1.30 major handle, and as FXStreet's own Valeria Bednarik noted: "the pair is trading firmly above the 1.3000 figure and not far below the mentioned high, offering a bullish short-term technical perspective, particularly as previous attempts to break above the mentioned threshold were quickly reverted. In the 4 hours chart, the price surpassed its moving averages, with the 20 SMA about to cross above the 200 EMA, both converging around 1.2940. Indicators in the mentioned chart have stabilized well above their midlines, holding near daily highs but losing upward momentum given that the price can go beyond the mentioned daily high. Nevertheless, the upside is favored, with scope now to test 1.3170, the 50% retracement of the 2016/18 rally."

Support levels: 1.2985 1.2940 1.2890

Resistance levels: 1.3050 1.3095 1.3130

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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