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GBPUSD hits 5-week high on Brexit deal hope

jeffriess
October 16, 2019
by Joseph Jeffriess, Market Analyst

Article Recap

Today’s High-impact GBP economic news:

7:30 pm UK CPI EXP 1.8%

Brexit deal hope continues to drive the GBPUSD. Overnight the freight train rally that started on the 10th continues to drive higher after buyers added a further 178 pips in yesterday’s session.

European Union negotiator Michel Barnier said a Brexit deal between the bloc and the U.K. is still possible this week. Speaking in Luxembourg ahead of a critical meeting between European leaders, which will likely decide the fate of Brexit, Barnier said: “Our team(s) are working hard, and work has just started now today, this work has been intense over the weekend and yesterday, because even if the agreement will be difficult, more and more difficult, to be frank, it is still possible this week.” – CNBC

GBP traders will remain focused on continuing Brexit updates with the exit date of October 31 fast approaching. Traders will want to see the current progression remain with what looks a smooth transition at this point. But as we’ve seen in recent time, things can change quickly. On the short-term, UK CPI Y/Y data will be released tonight at 7:30 pm the market is looking for 1.8%.

Since the 10th the GBPUSD has catapulted 580 pips higher. Overnight buyers took price back to 5-week highs after moving back above 1.2785, breaking the May/June resistance level in the same session. We’ll be watching with interest how price moves from this point and if the current momentum can be sustained.

Daily GBPUSD Chart
GBPUSD.iDaily-1016

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