GBP/USD: rally falters ahead of 1.2500

GBP/USD picked up momentum at the beginning of the North American session and rallied from daily lows, climbing nearly 200 pips over the last hours.

GBP/USD rallied through the 1.24 mark and reached a peak a few pips shy from the 1.25 level. At time of writing, Cable is trading at 1.2475, recording a 1.13% gain on Monday.

On Monday, UK Prime Minister Theresa May, hinted that the UK government will seek for a transitional Brexit deal, to avoid the economic collapse many fear these days. However, GBP/USD jump is being blamed to lack of liquidity in FX market.

GBP/USD technical levels

As for technical levels, next resistances are seen at 1.2528 (Nov 15 high), 1.2562 (50-day SMA) and 1.2591 (Nov 14 high). On the flip side, supports could be found at 1.2300 (Nov 17 low), 1.2219 (Nov 2 low) and 1.2205/00 (Nov 1 low/psychological level).

To learn more about this topic, check our video analysis:

gbp usd from Tip TV Productions on Vimeo.