- GBP is the best performer among the G10 currencies on Tuesday.
- The US dollar is stable as risk appetite wanes.
The pair GBP / USD hit a fresh two-month high and then fell back. The pair rose to 1.3277, the strongest level since September 4, and at the time of writing, it is trading at 1.3220, retreating from the highs but still going 60 pips on the day.
The key factor in the pair on Tuesday has been the British pound. GBP has performed better after GBP / USD break above 1.3200. Technical operations played an important role. As for the basics, expectations of an agreement between the European Union and the United Kingdom rise as negotiations continue in London, while UK employment data on Tuesday beat expectations.
The US dollar has changed little across the board compared to Monday’s close. It is backed by higher yields in the United States. Furthermore, the appetite for risk has diminished, taking the pressure off the dollar. On Wall Street, the Dow Jones is up 0.60% while the Nasdaq is down 1.20%.
From a technical perspective, the GBP / USD pair gained strength after breaking above 1.3200 and boosted the pound across the board. As long as the pair remains above 1.3150, the bias will point to the upside. Immediate resistance is the 1.3275 / 80 area. A break to the upside should clear the way to target the 1.3300 level.
Credits: Forex Street
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