The pound sterling continued its bullish trend as the Brexit talks gain traction. The sterling rose to a five-month high, partly due to a weaker USD. Despite the optimism, there were still issues to be sorted. Meanwhile, the UK’s Brexit deadline inches closer. Failure to clinch a deal would mean that PM Johnson will need to seek a formal extension.
GBP/USD on Track to Test Resistance
The GBPUSD currency pair maintained strong gains to the upside. Price action is within reach of the resistance level of 1.2895. In the short term, the gains could be capped at this level. This would mark an end to the upside rally. We expect price action to eventually ease back from this level.
