The British pound has moved sharply higher against the U.S dollar, hitting 1.3380, after reports surfaced that the UK is prepared to offer the EU over forty billion euros, as part of the ‘divorce’ deal. The GBPUSD pair currently trades above the key 1.3360 level, as bullish momentum continues to build over short and medium-term horizons. Yesterday sterling dipped to 1.3220 level support, but quickly recovered as dip buyers came in. The major risk events for the GBPUSD pair today are third quarter GDP figures from the U.S, and Janet Yellen’s testimony before U.S congress.
The GBPUSD pair remains strongly technically bullish while trading above the 1.3360 level. Further upside towards the 1.3410 and 1.3500 levels seems possible today.
Should price-action on the GBPUSD pair decline below the 1.3360 support level, sellers will likely target the 1.3307 level, with extended support at 1.3280.
