GBP/USD surges through 1.2500 handle, refreshes weekly tops

Some cross-driven strength triggers the initial leg of short-covering bounce.
A modest USD pullback from multi-week tops provides an additional boost.
Possibilities of some intraday stops being triggered accelerate the up-move.

Haresh Menghani FXStreet

The GBP/USD pair surged through the key 1.2500 psychological mark and refreshed weekly tops in the last hour.

After an early European session dip, the pair witnessed a dramatic turnaround and has now rallied nearly 100-pips from intraday lows around the 1.2425 region. The initial leg of recovery was triggered by some cross-driven strength, stemming out of a sharp intraday slide in the EUR/GBP cross.

The uptick got an additional boost in the wake of a modest US Dollar pullback from five-week tops, which coupled with possibilities of some intraday stops being triggered on a sustained move beyond the overnight swing high - around the 1.2480-85 region, aggravated the short-covering bounce.

It, however, remains to be seen if the recovery is backed by any genuine buying or is solely fueled by short-covering, which runs the risk of fizzling out rather quickly amid persistent fears of a no-deal Brexit and absent relevant market moving economic releases from the UK.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2521
Today Daily Change	0.0083
Today Daily Change %	0.67
Today daily open	1.2438

Trends
Daily SMA20	1.2543
Daily SMA50	1.2627
Daily SMA100	1.2853
Daily SMA200	1.2868

Levels
Previous Daily High	1.2483
Previous Daily Low	1.2418
Previous Weekly High	1.2579
Previous Weekly Low	1.2382
Previous Monthly High	1.2784
Previous Monthly Low	1.2506
Daily Fibonacci 38.2%	1.2443
Daily Fibonacci 61.8%	1.2458
Daily Pivot Point S1	1.241
Daily Pivot Point S2	1.2381
Daily Pivot Point S3	1.2344
Daily Pivot Point R1	1.2475
Daily Pivot Point R2	1.2511
Daily Pivot Point R3	1.254

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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