GBP/USD rallies to session tops, around mid-1.3200s but lacks follow-through

   •  Rees-Mogg's comments raise hope of a potential softening of stance by the ERG.
   •  May's deal likely be tabled for a third meaningful Parliament vote on Wednesday.

The GBP/USD pair rallied over 80-pips from daily lows and surged to fresh session tops, around mid-13200s during the mid-European trading session.

The pair witnessed a dramatic intraday turnaround and once again managed to find decent support near the 1.3160-55 region after leading Brexiteer Jacob Rees-Mogg hinted that he may be forced to support Theresa May's Brexit deal rather than risk the UK staying in the EU.

His comments raised hopes of a potential softening of stance by Tory lawmakers and the ERG, significantly boosting prospects for the PM May's Brexit deal to be tabled in the Parliament for a third meaningful vote, as early as tomorrow.

This comes a day after the House of Commons voted to seize control of the process from the government and enabled MPs to hold indicative votes on Brexit options - including the options to avoid the Brexit altogether or a second referendum.

However, market participants remain convinced that May might still struggle to gain enough support to pass the relevant legislation through the parliament and seemed to be the only factor capping any strong follow-through momentum, at least for the time being. 

Hence, it would be prudent to wait for a strong follow-through buying before positioning for any further near-term appreciating move, possibly beyond the recent multi-month highs, towards reclaiming the 1.3400 round figure mark.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3242
Today Daily Change 0.0044
Today Daily Change % 0.33
Today daily open 1.3198
 
Trends
Daily SMA20 1.3199
Daily SMA50 1.3074
Daily SMA100 1.2918
Daily SMA200 1.2979
 
Levels
Previous Daily High 1.3247
Previous Daily Low 1.316
Previous Weekly High 1.3312
Previous Weekly Low 1.3003
Previous Monthly High 1.3351
Previous Monthly Low 1.2773
Daily Fibonacci 38.2% 1.3193
Daily Fibonacci 61.8% 1.3213
Daily Pivot Point S1 1.3157
Daily Pivot Point S2 1.3115
Daily Pivot Point S3 1.307
Daily Pivot Point R1 1.3243
Daily Pivot Point R2 1.3288
Daily Pivot Point R3 1.333

 

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