- GBP / USD remains stable above 1.29 after choppy moves.
- The 100 hourly SMA limits the recovery attempt from the trend line support.
- Brexit news will dominate price action ahead of the Johnson-von der Leyen meeting.
The pair GBP/USD has witnessed a move of almost 100 pips in the last few hours, in the wake of incoming Brexit news ahead of the critical meeting between British Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen later on Wednesday.
The meeting is another Prime Minister Johnson’s attempt to reach an agreement on the post-Brexit transition trade deal with the Union, as EU leaders meet on Thursday and Friday. Discussing the future relationship with the UK will be one of your priorities.
Amid conflicting news from both sides, the GBP / USD pair has seen good two-way moves, initially accelerating Tuesday’s declines to hit a five-day low at 1.2864 after the media reported that it is likely that EU leaders say not enough progress in the Brexit negotiations.
Later, the bulls took control again and rose GBP / USD sharply to daily highs at 1.2980 following the UK’s commitment to meet its efforts to reach a trade agreement with the bloc beyond the October 15 deadline established by Johnson.
From a technical perspective, as seen on the hourly chart, the price has registered a solid rebound, having found strong support at the uptrend line at 1.2864.
Meanwhile, the recovery has run out of steam just below the 100 hourly moving average in 1.2985. Looking up, the bulls need a sustained move above this last level in an attempt to test the zone of 1.3000.
On the other hand, immediate support is observed around the round level of 1.2900, below which the previously mentioned uptrend line support could be back in play.
GBP / USD 1 hour chart
Credits: Forex Street