GBPUSD moves to daily highs as the positive move accelerates after the pair breached above the 100-day moving average. Yesterday the pair managed to recover the early losses and return close to the 100-day moving average. British pound supported by robust economic data from the UK in the last two weeks.
The improved economic data are supporting the views that the UK economy is improving after the Brexit uncertainty. Many analysts argue now that the BOE will not proceed with an interest rate cut in the upcoming meeting as the economy shows clear signs of a strong rebound.
Investors await later today the EU’s mandate for the Brexit trade negotiations, up for signing by the 27 member countries.
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GBPUSD Regains Positive Momentum Above the 100-Day MA
GBPUSD is adding over 55 pips as of writing in a move that is not supported by any positive news, but must be just technical buying that accelerated after the pair breached the 100-day moving average. Bulls are gaining momentum while a close today above the 100-day moving average might attract more buyers.
On the upside, first resistance would be met at 1.2984 the daily high. If the GBPUSD pair breaks above the next level to watch is at 1.3022 the high from February 19th. More selling pressure would be met at 1.3037 the 50-day moving average.
On the other hand, initial support for the pair stands at 1.2912 the daily low. Next support level for GBPUSD will be met at 1.2886 the low from February 24. A break below might open the way for the next support area at 1.2848 the February 20th, low.