GBP/USD surges to over 1-week tops, around 1.3040-45 region
- GBP/USD catches some aggressive bids amid the incoming UK political headlines.
- Technical buying above 1.30 mark further contributes to the intraday upsurge.
- Investors look forward to the US consumer inflation figures for a fresh impetus.
The buying interest around the British pound picked up some additional pace in the last hour and lifted the GBP/USD pair to over one-week tops, around the 1.3040 region.
Following an early dip to levels just below mid-1.2900s, the pair regained some positive traction and moved back into the positive territory for the fourth consecutive session Thursday. The British pound lost some ground in reaction to reports that the UK finance minister Sajid Javid has resigned.
Sterling influenced by UK political developments
The downtick, however, turned out to be short-lived, rather attracted some aggressive dip-buying after the UK government confirmed that Rishi Sunak, the current chief secretary to the Treasury, has been appointed as the new Chancellor.
The pair rallied hard and took along some near-term trading stops being placed near the key 1.30 psychological mark. Hence, it will now be interesting to see if the upsurge is backed by genuine buying or turns out to be stop run amid persistent fears of a no-deal Brexit.
Moving ahead, market participants now look forward to the US economic docket, highlighting the release of the latest consumer inflation figures, which might influence the US dollar price dynamics and produce some short-term trading opportunities.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
