GBPUSD strongly rebounds after a weak start of the week below 1.29 but as of writing the pair managed to hit fresh five-month highs at 1.3010 a level that we haven’t seen since mid-May. Positive headlines crossing the wires around the Brexit deal gives Pound a strong boost. This time DUP’s Shannon said that we can’t support customs union amendment. A positive reaction on the headlines for GBPUSD, which added almost 80 pips.
GBPUSD trades close to daily high, after the Shannon’s comments. The outlook is positive for GBPUSD despite the weak morning start. On the upside where traders turned their focus now, immediate resistance can be found at 1.3010 the daily high, with more offers probably emerging at the 1.3050 the high from mid-May 2019. On the flip side, the first support level for GBPUSD stands at 1.2874 the daily low and then at 1.2714 the 200-day moving average. The critical level for the short term momentum is 1.30; a convincing move above will attract more bulls, while a failure at that level might signal profit-taking. Going forward, traders must be cautious as the Brexit headlines will guide the movement of GBPUSD.