GBP/USD jumps toward 1.34 on Fresh Brexit Optimism |
See All Blogs

GBP/USD jumps toward 1.34 on Fresh Brexit Optimism

14-12-2020 15:47:08 PM

GBP/USD is trading closer to 1.34, over 1% higher. The EU and the UK decided to extend Brexit talks and The Times reports some progress has been made. Optimism on US stimulus is somewhat weighing on the safe-haven dollar.

Pound/dollar has pierced through the 50, 100 and 200 Simple Moving Averages on the four-hour chart on its way up – and momentum has turned positive as well. The Relative Strength Index remains well below the 70 level, thus far from overbought conditions. 

All in all, bulls are in control. 

Some resistance awaits at 1.34, a level that capped GBP/USD in November. It is followed by 1.3480, a swing high seen last week, and finally by the 2020 peak of 1.3540. 

Significant support is only at 1.3230, which was a temporary low early in the month, followed by the December low of 1.3140. The next levels to watch are 1.3105 and 1.3030.