- GBP / USD recently jumped from around 1.3460 above the December 2019 high of 1.3516 despite the lack of new fundamental developments.
- The pair has been rocking this week as Brexit negotiations seemingly nearing a climax.
- GBP / USD strength is also exacerbated by USD weakness following a mild jobs report in November.
Despite the lack of a new UK or Brexit specific news stream, the pair GBP/USD recently jumped to new highs since the first half of 2018, surpassing the high of 1.3516 following the UK general election in December 2019. Currently, the pair is trading near 1.3530, with gains of around 80 pips or 0.6% in the day.
GBP tops G10 performance chart on Brexit optimism
Currently, the British pound is the best performing currency in the G10. Although the recent gains cannot be directly attributed to any specific headline, Brexit optimism appears to be the name of the game on Friday. In terms of the latter, the GBP received an offer on Friday morning in the headlines quoting EU sources as saying that a Brexit trade deal is “imminent” and expected by the end of the weekend except break up the last minute debate.
The weakness of the USD following a weak report from the US labor market also appears to be helping the British pound; As a summary, the US economy added just 245,000 jobs in November according to the Bureau of Labor Statistics (SLB), and although the unemployment rate fell, this was due to a decrease in the participation rate. BLS said 3.9 million Americans were unable to look for work in November due to the pandemic, up from 3.6 million in October.
Technical buy on the breakout also seems to be in play, or perhaps a stop-loss streak placed just above the 1.3500 level or the December 2019 high of 1.3516.
GBP / USD eyes move towards 1.3600 and above
On the upside, key resistance levels gradually lie between GBP and the psychological level of 1.3600. Beyond that, the next significant area of ​​resistance is the September 2017 high of 1.3360 and, above that, the March 2018 low just above 1.3700. On the downside, the December 2019 high at 1.3516, the 1.3500 level and the September 2020 high at 1.3485 should offer strong support.
.
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.
