GBP/USD: Bulls headed to 1.3150 amid hopes for May's new Brexit plan

Reports of DUP backing UK PM May and improved risk tones boost the Sterling.
Further upside opening up ahead of UK CBI realized sales and monthly budget statement release.

Dhwani Mehta FXStreet

The buying interest around the pound remains unabated, pushing the GBP/USD pair back towards the midpoint of the 1.31 handle as we head towards the early European trading.

GBP/USD trades above all major DMAs

The recent bullish momentum around the British pound gathered steam in early Asia following the reports that the Northern Irish Democratic Unionist Party (DUP) decided to privately agree to support UK PM May’s ‘Plan B’ Brexit Deal. The headlines offered fresh impetus to the bulls, now driving the Cable to the highest levels since November 2018 near 1.3130 region.

Meanwhile, the broad-based US dollar rally to multi-week highs lost legs amid improved risk tones, as the Asian equities advance alongside oil prices on conflicting reports over the US-China trade progress. Hence, the latest leg down in the greenback also collaborated to the upside in the spot. The USD index drops -0.20% to 96.40, extending the retreat from three-week tops of 96.68.

Looking ahead, the recent Brexit reports will continue to underpin the sentiment around the major while the risk trends will play a key driver amid a lack of first-tier macro releases from both the UK and the US docket today. The UK sees the BBA mortgage approvals and CBI realized sales data while the monthly budget statement will be released later in the NA session.

GBP/USD Technical Levels

GBP/USD

Overview:
    Today Last Price: 1.3125
    Today Daily change: +67 pips
    Today Daily change %: 0.51%
    Today Daily Open: 1.3058
Trends:
    Daily SMA20: 1.2827
    Daily SMA50: 1.2758
    Daily SMA100: 1.2895
    Daily SMA200: 1.3067
Levels:
    Previous Daily High: 1.3096
    Previous Daily Low: 1.3012
    Previous Weekly High: 1.3002
    Previous Weekly Low: 1.2668
    Previous Monthly High: 1.284
    Previous Monthly Low: 1.2477
    Daily Fibonacci 38.2%: 1.3044
    Daily Fibonacci 61.8%: 1.3063
    Daily Pivot Point S1: 1.3015
    Daily Pivot Point S2: 1.2971
    Daily Pivot Point S3: 1.2931
    Daily Pivot Point R1: 1.3099
    Daily Pivot Point R2: 1.3139
    Daily Pivot Point R3: 1.3183

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.

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