GBP/USD made a break to higher ground on growing hopes for a Brexit breakthrough on all fronts. PMIs stand out in the upcoming week, which is quite busy. Here are the key events and an updated technical analysis for GBP/USD.
Hopes for a deal on the divorce bill in the Brexit negotiations sent the pound to the highest levels in two months, with hopes, later cooled down, also on the question of the Irish border. The celebrations may have come too early. It’s a race against the clock.The question of the Irish border remains problematic. BOE Governor Mark Carney said he assumed a smooth Brexit, which is somewhat questionable. In the US, the dollar got a boost from the excellent new home sales number while Powell hinted he will not rock the boat. The greenback also got a boost from upcoming tax cuts, Yellen’s optimism, and also a strong GDP read of 3.3%. That wasn’t enough to beat the pound.
Updates:
GBP/USD daily graph with resistance and support lines on it. Click to enlarge:
