GBP/USD surges to 1.2800 handle, tests 50-DMA for the first time since mid-Nov.

Haresh Menghani FXStreet

• Persistent USD selling bias helps gain strong positive traction on Monday.
• The GBP bulls seemed rather unaffected by uncertainties surrounding Brexit.

The GBP/USD pair extended its goodish intraday up-move and jumped to the 1.2800 handle, now testing 50-day SMA for the first time since mid-Nov.

The pair built on last week's rebound from the vicinity of the 1.2600 round figure mark and continued gaining positive traction for the third consecutive session amid persistent US Dollar selling bias.

Expectations of a dovish Fed next year, along with a partial US government shutdown kept the USD bulls on the defensive and turned out to be one of the key factors driving the pair higher.

Adding to this, possibilities of some short-term trading stops being triggered on a move beyond last week's swing high, around the 1.2735-40 region, further collaborated towards accelerating the up-move.

Meanwhile, bulls seemed rather unaffected by Brexit uncertainties, with the broad-based USD weakness acting an exclusive driver of the pair's strong positive momentum amid relatively thin liquidity conditions on New Year's Eve.

Technical levels to watch

GBP/USD

Overview:
    Today Last Price: 1.2803
    Today Daily change: 1.0e+2 pips
    Today Daily change %: 0.819%
    Today Daily Open: 1.2699
Trends:
    Previous Daily SMA20: 1.2661
    Previous Daily SMA50: 1.2793
    Previous Daily SMA100: 1.2899
    Previous Daily SMA200: 1.3191
Levels:
    Previous Daily High: 1.271
    Previous Daily Low: 1.2635
    Previous Weekly High: 1.2778
    Previous Weekly Low: 1.2616
    Previous Monthly High: 1.3176
    Previous Monthly Low: 1.2723
    Previous Daily Fibonacci 38.2%: 1.2682
    Previous Daily Fibonacci 61.8%: 1.2664
    Previous Daily Pivot Point S1: 1.2653
    Previous Daily Pivot Point S2: 1.2606
    Previous Daily Pivot Point S3: 1.2577
    Previous Daily Pivot Point R1: 1.2728
    Previous Daily Pivot Point R2: 1.2757
    Previous Daily Pivot Point R3: 1.2804

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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