GBPUSD Heading To A New Two-Month High
- Buz Investors New Two-Month High At 10:40 GMT, the pair is trading at 1.2718, with the Pound trading 0.08% lower against US Dollar from the New York close.
- On the data front, UK’s Markit services PMI unexpectedly climbed in November. The pair witnessed a high of 1.2743 and a low of 1.2623 during the session.
- On Friday, the Pound traded 0.83% higher against the US Dollar in the New York session and ended at 1.2728. Immediate downside, the first support level is seen at 1.2632, while on the upside, the first resistance level is situated at 1.2774.
New Two-Month High
New Two-Month High The broader risks to GBP continue to lie to the downside – at least until the tail-risk of a ‘messy divorce’ has been taken off the table.’ – ING (based on PoundSterlingLive)
Relatively disappointing US employment figures on Friday allowed the British Pound to add more than 140 pips against the Greenback, causing the Cable to climb over the 1.27 major level.
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New Two-Month High
Today the GBP/USD currency pair opened with a small bearish gap, but despite that the Sterling is still likely to inch higher, as technical indicators in the daily timeframe suggest. The only obstacle on the Cable’s path is the monthly R1 at 1.2718, but after Friday’s breach of this resistance the pair is expected to ignore this area and successfully stabilise at a fresh eight-week high.
The Italian referendum over the weekend received a ‘no’ vote, and as expected Italian PM Matteo Renzi announced his resignation. After a brief burst of risk aversion, EUR/USD has put in an out-sized reversal following a brief visit to a well-tested zone of support.
– Tomorrow brings another Brexit hearing and while a verdict may not be heard until January, volatility in GBP/USD could certainly persist as GBP is one of the few currencies in the world that’s been as strong as the U.S. Dollar throughout the month of November.
major currencies: (EUR-USD) (USD-JPY) (GBP-USD) (USD-CHF), (USD-CAD), (AUD-USD)
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