GBP/USD regains 1.3500 and above on Brexit

Fresh Brexit headlines boost Cable to fresh tops.
Attention now on Eurogroup meeting on December 14-15.

Pablo Piovano FXStreet

The Sterling has sharply rebounded from daily lows vs. the greenback and is now lifting GBP/USD to challenge daily tops beyond 1.3500 the figure.

GBP/USD bounces off 1.3420

Cable is now gaining around a cent in the 1.3520 region after bottoming out near 1.3420 earlier in the session.

Positive Brexit headlines lifted further the optimism among investors after UK’s PM T.May stressed that good progress has been made around Brexit talks, although more is needed.

In the same line, an agreement on the ‘Irish border’ issue appears also likely, giving extra support to GBP.

All the attention has now shifted to the meeting between EU’s Tusk and T.May this afternoon in Brussels.

In the UK data space, November’s construction PMI came in better than expected at 53.1, surpassing as well September’s reading at 50.8.

GBP/USD levels to consider

As of writing, the pair is up 0.35% at 1.3519 facing the next hurdle at 1.3550 (high Dec.1) seconded by 1.3658 (2017 high Sep.20) and finally 1.3700 (psychological level). On the other hand, a break below 1.3421 (low Dec.4) would open the door to 1.3411 (2014-2017 down trend line) and then 1.3373 (10-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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