GBPUSD Breaks Higher on Brexit Optimism
GBPUSD continues the rebound from 1.1957 lows from September 3rd, adding as of writing 1.10% at 1.2464 after rumours, indicating that the EU is prepared to grant another Brexit extension to the UK and Boris Johnson will meet with Juncker for Brexit talks next Monday.
GBPUSD adds over 140 pips and now bulls are back in the game. On the upside, immediate resistance now stands at 1.2514 the 100-day moving average while more offers will emerge at 1.2738 the 200-day moving average. On the downside, immediate resistance stands at 1.2320 today’s low and then at 1.2277 the 50-hour moving average. Intraday traders can enter a long position if the pair breaks above 1.2475 daily high, targeting the 100-day moving average, a stop order should be activated at 1.24. Short positions from here targeting 1.23 should place stop-loss orders at 1.2475. Traders must be very cautious with GBPUSD as the developments around Brexit will add to volatility.