GBP/USD surges through 1.2200 handle, over 3-week tops

Bulls continue to show some resilience ahead of the 1.2100 handle.
A modest USD pullback contributed to the intraday positive move.
Brexit-related uncertainties kept a lid on any strong follow-through.

Haresh Menghani FXStreet

The buying interest around the British Pound picked up the pace in the last hour, with the GBP/USD pair surging through the 1.2200 handle to hit over three-week tops.

Bulls shrug off the incoming Brexit headlines

The pair once again managed to find decent support just ahead of the 1.2100 handle and rallied over 70-pips intraday, rather unaffected by persistent uncertainty about Britain's exit from the European Union (EU). Ahead of his meeting with French President Emmanuel Macron, the UK PM Boris Johnson repeated that they must leave the EU on October 31 with or without a deal.

Adding to this, Macron emphasized that the backstop is indispensable and also said that there will be no new Brexit withdrawal agreement within 30 days. Macron further added that a no-deal scenario was not the EU's choice, but they must be ready for it. The comments reflected diverging stances, though did little to influence bearish traders or prompt toms fresh selling.

On the other hand, the US Dollar failed to capitalize on the overnight up-move - supported by not so dovish July FOMC meeting minute - and further collaborated to the pair's intraday bullish move. The positive momentum, however, once again faltered ahead of the 1.2200 handle, with the pair quickly retreating around 25-30 pips to currently trade around mid-1.2100s.

Moving ahead, Thursday US economic docket - featuring the release of flash manufacturing and services PMI - will now be looked upon for some short-term trading opportunities amid the incoming Brexit-related headlines and ahead of Jackson Hole Symposium, where comments from central bankers can trigger significant market volatility.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2157
Today Daily Change	0.0029
Today Daily Change %	0.24
Today daily open	1.2128

Trends
Daily SMA20	1.2157
Daily SMA50	1.2407
Daily SMA100	1.2645
Daily SMA200	1.2785

Levels
Previous Daily High	1.2177
Previous Daily Low	1.2112
Previous Weekly High	1.2176
Previous Weekly Low	1.2015
Previous Monthly High	1.2706
Previous Monthly Low	1.2119
Daily Fibonacci 38.2%	1.2137
Daily Fibonacci 61.8%	1.2152
Daily Pivot Point S1	1.2101
Daily Pivot Point S2	1.2074
Daily Pivot Point S3	1.2036
Daily Pivot Point R1	1.2166
Daily Pivot Point R2	1.2204
Daily Pivot Point R3	1.223

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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