GBP/USD recedes from fresh 2-month peaks near 1.2880

  • Cable prints multi-week peaks near 1.2880.
  • PM May hinted at the likeliness that MPs could support her plan.
  • UK’s crucial vote is scheduled for tomorrow.

The buying pressure around the Sterling is picking up pace today, lifting GBP/USD to fresh 2-month tops in the 1.2880 region.

GBP/USD up on May’s optimistic comments

Cable added to Friday’s gains beyond 1.2800 the figure as investors deemed as positive earlier comments by UK’s PM Theresa May.

In fact, May opened the door to a no-deal scenario or a risk of a no Brexit at all in case the Parliament rejects her deal at tomorrow’s crucial vote. GBP appreciated further after May hinted at the likelihood that MPs could now support her plans.

Despite her optimism, consensus among investors expects the Parliament to reject her plans tomorrow.

GBP/USD levels to consider

As of writing, the pair is up 0.11% at 1.2856 facing the next hurdle at 1.2879 (high Jan.14) seconded by 1.2892 (100-day SMA) and then 1.2927 (high Nov.22). On the other hand, a breach of 1.2773 (55-day SMA) would open the door to 1.2740 (10-day SMA) and finally 1.2706 (low Jan.8).

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