GBP/USD technical analysis: Largest two-day advance since 2016 on Brexit optimism, off 1.2700 handle

EU27 tunnel negotiations with the United Kingdom sparks 200-pip spike on Cable.
In the New York session, GBP/USD is easing from the 1.2700 handle.

Flavio Tosti Independent Analyst

GBP/USD daily chart

The Cable, on the daily chart, is trading in a bear trend below its 200-day simple moving average (DSMA). GBP/USD is up nearly 500 pips from the October lows, as the Cable is on track to its largest two-day rally since 2016. The last leg up is attributed to EU’s Chief Brexit Negotiator Barnier having the green light from the EU27 for tunnel negotiations with the United Kingdom.

GBP/USD four-hour chart

GBP/USD got another leg up worth about 200 pips. The market is currently consolidating the spike below the 1.2700 handle. If the market break above this level the newt stop can become the 1.2800 figure.

GBP/USD 30-minute chart

The Pound is trading above the main SMAs, suggesting bullish momentum in the near term. Support is seen at the 1.2600, 1.2543/30 zone and the 1.2477 level, according to the Technical Confluences Indicator.

Additional key levels

GBP/USD

Overview
Today last price	1.2609
Today Daily Change	0.0165
Today Daily Change %	1.33
Today daily open	1.2444

Trends
Daily SMA20	1.2375
Daily SMA50	1.2262
Daily SMA100	1.2413
Daily SMA200	1.2715

Levels
Previous Daily High	1.247
Previous Daily Low	1.2204
Previous Weekly High	1.2414
Previous Weekly Low	1.2205
Previous Monthly High	1.2583
Previous Monthly Low	1.1958
Daily Fibonacci 38.2%	1.2368
Daily Fibonacci 61.8%	1.2305
Daily Pivot Point S1	1.2275
Daily Pivot Point S2	1.2107
Daily Pivot Point S3	1.201
Daily Pivot Point R1	1.2541
Daily Pivot Point R2	1.2638
Daily Pivot Point R3	1.2806

Author

Flavio Tosti

Independent Analyst

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