GBP/USD rallies over 40-pips from 2-week lows, refreshes session tops

Haresh Menghani FXStreet

• Stages a goodish rebound to snap four consecutive days of losing streak.
• Brexit jitters/follow-through USD buying might keep a lid on further gains.

The GBP/USD pair quickly reversed an early European session dip to two-week lows and rallied around 40-45 pips to refresh session tops in the last hour.

Despite a series of weak PMI prints recently, which reaffirmed the effects of Brexit uncertainties on businesses, the pair showed some resilience at lower levels and managed to regain positive traction to snap four consecutive days of losing streak.

The uptick lifted the pair back above mid-1.2900s, beyond Asian session swing high, touched in reaction to a report by the Telegraph that several cabinet ministers have secretly discussed plans to delay Brexit by eight weeks - from the current March 29 deadline to May 24.

Having said that, a possible extension of Article 50 still looks unlikely at this juncture, which coupled with growing market expectations for a no-deal Brexit might continue taking its toll on the Sterling and keep a lid on any runaway rally for the major.

Hence, it would be prudent to wait for a strong follow-through up-move beyond the key 1.3000 psychological mark before calling this a real turnaround and concluding that the uptick is backed by some genuine buying rather than short-covering from oversold conditions.

Technical levels to watch

GBP/USD

Overview:
    Today Last Price: 1.2971
    Today Daily change %: 0.12%
    Today Daily Open: 1.2956
Trends:
    Daily SMA20: 1.298
    Daily SMA50: 1.2803
    Daily SMA100: 1.2898
    Daily SMA200: 1.3034
Levels:
    Previous Daily High: 1.3056
    Previous Daily Low: 1.2925
    Previous Weekly High: 1.3212
    Previous Weekly Low: 1.3043
    Previous Monthly High: 1.3214
    Previous Monthly Low: 1.2438
    Daily Fibonacci 38.2%: 1.2975
    Daily Fibonacci 61.8%: 1.3006
    Daily Pivot Point S1: 1.2902
    Daily Pivot Point S2: 1.2848
    Daily Pivot Point S3: 1.2771
    Daily Pivot Point R1: 1.3032
    Daily Pivot Point R2: 1.3109
    Daily Pivot Point R3: 1.3163

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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