GBP/USD surges to 1.2800 handle, tests 50-DMA for the first time since mid-Nov.
• Persistent USD selling bias helps gain strong positive traction on Monday.
• The GBP bulls seemed rather unaffected by uncertainties surrounding Brexit.
The GBP/USD pair extended its goodish intraday up-move and jumped to the 1.2800 handle, now testing 50-day SMA for the first time since mid-Nov.
The pair built on last week's rebound from the vicinity of the 1.2600 round figure mark and continued gaining positive traction for the third consecutive session amid persistent US Dollar selling bias.
Expectations of a dovish Fed next year, along with a partial US government shutdown kept the USD bulls on the defensive and turned out to be one of the key factors driving the pair higher.
Adding to this, possibilities of some short-term trading stops being triggered on a move beyond last week's swing high, around the 1.2735-40 region, further collaborated towards accelerating the up-move.
Meanwhile, bulls seemed rather unaffected by Brexit uncertainties, with the broad-based USD weakness acting an exclusive driver of the pair's strong positive momentum amid relatively thin liquidity conditions on New Year's Eve.
Technical levels to watch
Today Last Price: 1.2803
Today Daily change: 1.0e+2 pips
Today Daily change %: 0.819%
Today Daily Open: 1.2699
Previous Daily SMA20: 1.2661
Previous Daily SMA50: 1.2793
Previous Daily SMA100: 1.2899
Previous Daily SMA200: 1.3191
Previous Daily High: 1.271
Previous Daily Low: 1.2635
Previous Weekly High: 1.2778
Previous Weekly Low: 1.2616
Previous Monthly High: 1.3176
Previous Monthly Low: 1.2723
Previous Daily Fibonacci 38.2%: 1.2682
Previous Daily Fibonacci 61.8%: 1.2664
Previous Daily Pivot Point S1: 1.2653
Previous Daily Pivot Point S2: 1.2606
Previous Daily Pivot Point S3: 1.2577
Previous Daily Pivot Point R1: 1.2728
Previous Daily Pivot Point R2: 1.2757
Previous Daily Pivot Point R3: 1.2804