GBP/USD: on the bid up 70 early pips

GBP/USD is currently on the bid and recovering from last week's lows of 1.3130 on the first encouraging signs that the UK can make trade deals with nations outside of the EU directly, such as Canada and Australia. 

Australia has already approached the UK for a free trade deal following its exit from the European Union.

The new prime minister, May, said, "I have been very clear that this government will make a success of our exit from the European Union. "One of the ways we will do this is by embracing the opportunities to strike free trade deals with our partners across the globe." 

"It is very encouraging that one of our closest international partners is already seeking to establish just such a deal. This shows that we can make Brexit work for Britain," she added.

GBP/USD levels

GBP/USD sold-off towards the 1.2750/78.6% retracement of the move from 1985 to 2007 at the start of this month, but it made highs of 1.3477 before further volatility kicked in last week sending the pair back to aforementioned lows. The pound is now over 65 pips in the start of Asia ahead of the 50 1hr sma at 1.3282.