- Expectations of an imminent Brexit deal provided further boost to GBP / USD on Thursday.
- The underlying bullish sentiment undermined the safe-haven dollar and remained supportive.
- The bulls are now awaiting official confirmation before positioning for any further appreciation moves.
The pair GBP/USD it maintained its strong gains during the mid-European session, although it has retreated more than 50 pips from an intraday swing high of 1.3619. The pair was last seen trading around the 1.3570-75 region, rising around 0.60% on the day.
Following the previous day’s late pullback of around 100 pips, the pair caught some aggressive offers on Thursday and rebounded closer to the two-and-a-half-year highs reached last week. Expectations of an imminent post-Brexit trade deal continued to boost the British pound. This, in turn, was seen as one of the key factors behind the strong bullish move for the second session in a row.
The latest Brexit optimism continued to support underlying bullish sentiment in global equity markets and continued to put some downward pressure on the safe-haven US dollar. This provided additional momentum to the GBP / USD pair and contributed to the strong positive intraday movement. However, a delay in the official announcement prevented bull trading from making any new bets.
Irish Foreign Minister Simon Coveney said there was a last minute language issue over fishing rights. As both sides work out some last-minute details, the growing market belief that a Brexit trade deal will be announced in a few hours supports the prospects for a further short-term appreciation move for GBP / USD.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
