GBP/USD approaches 1.2400, 2-week tops

The Sterling is the best performer by far on Tuesday, lifting GBP/USD to the boundaries of the 1.2400 handle, up more than 3%.

GBP/USD boosted by May, USD

The persistent selling pressure around the buck has been bolstering the upside in the pair since early today, although GBP found extra legs in the speech by UK’s PM Theresa May earlier in the session.

In fact, PM T.May highlighted the UK is leaving the EU and not Europe, although she ruled out staying in the single market. May stressed she wants to put her Brexit plans to a parliamentary vote, reiterating that she expects to maintain strong links with the euro area, calling at the same time for a more united UK.

GBP’s upside momentum has been also supported by higher-than-expected consumer prices during December, with the CPI rising at an annualized 1.6%.

GBP/USD levels to consider

As of writing the pair is gaining 2.67% at 1.2370 and a breakout of 1.2397 (high Jan.17) would aim for 1.2437 (high Jan.6) and finally 1.2564 (100-day sma). On the downside, the immediate support aligns at 1.2039 (low Jan.17) ahead of 1.1979 (low Jan.16) and then 1.1450 (GBP ‘flash crash’ Oct.7).