GBP/USD trades near 2019 highs around 1.3000 on Brexit rumours

The bid tone remains well and sound around the Sterling.
Cable extends the up move beyond 1.30 the figure.
Brexit rumours behind the fresh test of 1.30 and beyond.

Pablo Piovano FXStreet

The upbeat tone around the British Pound remains well and sound so far this week and is now pushing GBP/USD to new yearly peaks beyond 1.3000 the figure.

GBP/USD up on Brexit speculations

Today’s up move in Cable follows recent rumours that the Labour Party could support a proposal to delay Brexit until, at least, the end of the year. This ‘new’ scenario has been considered as positive by investors, as it should ‘buy’ further time to clinch a deal.

This news adds to the ongoing upside momentum in spot, which is advancing for the third consecutive session so far in spite of the broad-based sideline mood prevailing in the global markets.

Still around Brexit, the Parliament is due to vote PM May’s ‘Plan B’ and its potential amendments on January 29. In the meantime, the absence of a ‘no deal’ scenario appears to be gathering traction among investors although this view is opposed to those GBP-traders, which remain of the idea that a soft outcome is not only possible, but also feasible.

GBP/USD levels to consider

As of writing, the pair is up 0.30% at 1.2995 facing the next resistance at 1.3004 (2019 high Jan.23) seconded by 1.3072 (high Nov.14 2018) and then 1.3081 (200-day SMA). On the other hand, a breach of 1.2888 (10-day SMA) would open the door to 1.2830 (low Jan.21) and finally 1.2787 (21-day SMA).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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