GBP/USD surges to fresh multi-week tops, highest since early Oct.
• Dovish FOMC minutes-led USD selling remains unabated.
• A bullish breakout above 2-month old trading range.
• BOE’s Haldane and post-Brexit economic plan in focus.
After an inial dip to the 1.3300 neighborhood, the GBP/USD pair regained traction and rose to fresh multi-week tops in the past hour.
The latest leg of sharp up-move over the past hour or so lacked any fresh fundamental catalyst and could be solely attributed to persistent US Dollar selling bias. Last week's dovish FOMC meeting minutes continued taking its toll on the greenback and helped the pair to extend its near-term upward trajectory.
With today's up-move, the pair has now gained in excess of 330-pips from sub-1.3100 level touched earlier this month and now seems to have confirmed a bullish break through a nearly 2-month old trading range.
Market participants now look forward to the UK government's post-Brexit economic plan, set to be unveiled today, while comments by the BOE Chief Economist Andy Haldane and new home sales data from the US would also be looked upon for some short-term trading impetus.
Technical levels to watch
The ongoing momentum seems strong enough to continue lifting the pair towards the 1.3390-1.3400 hurdle, above which the upward trajectory could get extended towards 1.3440 horizontal resistance.
On the flip side, 1.3330 level now seems to protect the immediate downside, which if broken could accelerate the retracement back towards the 1.3300 handle en-route 1.3280-75 support.