GBP/USD through the roof, beyond 1.2500 on Brexit deal optimism
- GBP/USD surges amid fresh Brexit-supportive headlines.
- Sterling awaits Barclay-Barnier meeting outcome amid US-China trade talks.
The GBP/USD pair picked up fresh bids and broke its Asian consolidation phase to the upside to reach fresh three-week highs above the 1.25 handle, having witnessed good two-way businesses over the last hour following the Brexit-positive headlines.
EU’s Tusk: Received optimist messages that a deal on Brexit could be reached
The pound jumped over 100-pips from near 1.2430 region, in a knee-jerk reaction to the European Council President Tusk’s optimistic remarks, hopeful of a probable Brexit deal, as the key meeting between the EU’s Chief Brexit negotiator Barnier and UK Brexit Secretary Barclay concluded.
The bulls have clearly taken control following the initial whipsaw and look to regain the 1.2550, with the market mood also favoring the upside in the risk currency, the GBP. The risk tone remains buoyed by increased odds of the US and China reaching a trade deal later today, with the key meeting between the US President Trump and Chinese Vice Premier Liu scheduled at 1845 GMT.
In the meantime, the GBP markets eagerly await the likely positive outcome from the Barnier-Barclay meeting, as the UK officials report that the talks have just ended. At the press time, the spot trades +0.70% higher at 1.2525, reversing quickly from three-week tops of 1.2542.
GBP/USD Technical levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
