POUND SURGES ON BREXIT HEADLINE
The British pound has recovered all of yesterday afternoons trading losses against the U.S dollar hitting 1.3290, after headlines broke that EU chief negotiator, Michel Barnier is ready to offer a two-year transition period after Brexit, if the UK can meet the EU's financial terms.
Intraday trading sentiment surrounding the GBPUSD pair is now bullish, as any progress in Brexit negotiations between the UK and the EU is perceived to be hawkish for the British pound.
Yesterday's the GBPUSD pair managed to close price above the key 1.3220 level, with a bullish close of 1.3264. Buyers are also pushes prices to higher daily high's, signaling further possible gains ahead.
Today's daily and weekly price close will be crucial for determining the sincerity of yesterday's rebound, as traders await a raft of high-impact U.S data later today.
Key intraday technical resistance for the GBPUSD pair is found at 1.3290, 1.3323 and the key 1.3360 level. Above the 1.3360 level, further resistance is found at 1.3395 and 1.3450.
To the downside, key intraday technical support is found at 1.3264 and the former swing-low at 1.3244. Once below 1.3244, further support is found at the daily pivot point, at 1.3225 and the key 1.3200 level.