GBP/USD loves Brexit clarity, clocks fresh 1-1/2 month high

FX markets love anything that provides more clarity regarding the Brexit process. UK PM is set to publish the bill to trigger Brexit in a first reading later today.

Thus, Cable rose to 1.2646, the highest level since December 14. UK Pm Theresa May set the Pound on a recovery mode last week by stating “Brexit means Brexit.

Fresh information regarding Brexit is due later today. Apart from that, the focus would also be on the UK fourth quarter GDP report. Across the pond, US initial jobless claims report and advance goods trade balance could influence the dollar demand.

GBP/USD Technical Levels

A break above 1.2673 (Nov 11 high) would expose psychological figure of 1.27 (zero figure), above which a major hurdle is seen directly at 1.2775 (Dec 6 high, also double bottom neckline level). On the lower side, session low of 1.2625 could offer support, which if breached, would shift risk in favor of a drop to 1.2525 (100-DMA + 5-DMA). The next major support is 1.2416 (50-DMA).