• Hopes of delayed Brexit/second referendum continue to underpin GBP.
• The USD hangs near 3-week lows and remained supportive of the up-move.
• Market participants now look forward to Brexit motion debate/vote.
The buying interest around the British Pound picked up pace since the early European session and lifted the GBP/USD pair to the 1.3300 handle for the first time since July 2018.
A sudden change in the Brexit outlook, wherein the risk of a no-deal Brexit appears to have declined significantly this week, was seen as one of the key factors driving the pair higher for the fourth consecutive session.
A possible delay to the fast-approaching Brexit deadline on March 29 has been perceived as better than a no-deal outcome by the market participants, fueling expectations for a softer Brexit and underpinning the British Pound.
The sentiment remained bullish after the UK PM Theresa May confirmed on Tuesday that the parliament will have an opportunity to vote for a no-deal Brexit or Brexit extension if her revised Brexit deal again gets rejected on March 12.
The positive momentum got an additional boost after the EU's Chief Brexit negotiator Michel Barnier said that the EU was doing all it can do to reach a Brexit deal with the UK and avoid a disorderly Brexit.
Meanwhile, the prevalent US Dollar selling bias, with bulls failing to capitalize on the intraday attempted recovery, remained supportive of the pair's ongoing strong bullish momentum to near eight-month tops.
It would now be interesting to see if bulls are able to maintain their dominant position amid highly overbought conditions on short-term charts and ahead of today's Brexit motion debate and vote in the UK parliament.
Technical outlook
Mario Blascak, FXStreet's own European Chief Analyst explains: “The technical oscillators including Momentum and the Relative strength index are pointing upwards and Slow Stochastics continues to move upwards within the Overbought territory. The most important technical feature though is the golden cross of the 50-day moving average crossing over the 100-day moving average (DMA).”
“The golden cross is a strongly bullish technical signal that is expected to push Sterling to 1.3300 before testing the 1.3390 representing 61.8% Fibonacci retracement of post-Brexit recovery from 1.1800 to 1.4374,” he added further.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.