The British pound has moved sharply higher against the U.S dollar, hitting 1.4050, as reports surface that the United Kingdom and EU have agreed to the initial terms of a transitional Brexit deal. The GBPUSD has moved strongly above the key 1.4000 level, a technical resistance area the pair has previously struggled to break above recently. Medium-term Stochastic and RSI indicators are turning higher, pointing to continued intraday sterling gains.
The GBPUSD pair remains intraday bullish whilst trading above the 1.3973 level, further upside towards 1.4068 and 1.4146 seems possible.
A sustained move below the 1.4000 level may lead to a GBPUSD price-correction, with sellers again targeting the key 1.3973 level.
