GBP bulls now eyeing a sustained move

17 September, 2018

Renewed USD selling helps regain positive traction at the start of a new week. The up-move lacked follow-through amid absent fundamental drivers/relevant data.

The GBP/USD pair built on its steady intraday climb and refreshed session tops in the last hour, recovering a major part of Friday's corrective slide from six-week tops.

News that the Labour party is set to vote against PM May Chequers' Brexit deal, coupled with a batch of upbeat US economic data prompted some fresh selling around the major on Friday. The selling pressure aggravated after a report indicated that US President Donald Trump wanted to proceed with tariffs on $200 billion worth of Chinese goods.

Despite growing fears about a full-blown US-China trade war, renewed US Dollar selling was seen as one of the key factors behind the pair's positive momentum at the start of a new trading week. The British Pound got an additional boost after the UK Finance Minister Phillip Hammond reaffirmed prospects for a Brexit deal this autumn.

The uptick, exclusively driven by the USD price dynamics, lacked any strong follow-through momentum beyond the 1.3100 handle amid absent relevant UK economic data. Later during the early North-American session, the release of Empire State Manufacturing Index will now be looked upon to grab some short-term trading opportunities.

Momentum beyond the 1.3100 mark is likely to confront resistance near the 1.3135 area, above which the pair seems all set to aim towards challenging the 100-day SMA barrier near the 1.3180 region. On the flip side, the 1.3060-50 region might continue to protect the immediate downside, which if broken might turn the pair vulnerable to slide further towards the key 1.30 psychological mark.

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