GBP/USD Surges Close to 1.30 Again as the Brexit Deal is Reached
Finally, the Brexit deal has been reached. It has taken three years, but it seems there is a breakthrough at last. Earlier on, the EU chief Brexit negotiator Michel Barnier said that the Brexit deal text is ‘almost completed’. The situation for the GBP improved.
Then we heard rumours that a deal has been struck and soon after that EU’s Juncker popped up saying that “Where there is a will, there is a deal – we have one!”. He loves to make such comments after all the work has been done by other people, while he has been drinking himself to a slow death.
That’s what markets were waiting for and now risk assets have turned bullish again with commodity dollars considerably higher. GBP/USD led the way as it climbed nearly 250 pips. This pair retraced lower to the 50 SMA (yellow) this morning, but the 50 SMA (yellow) did a great job in providing support for this pair on the H1 chart once again.
Then, the jump higher came as Brexit deal rumours kept coming and the price surged more than 250 pips, getting close to 1.30, which is the highest level in five months. Although, the price has retraced around 100 pips lower after comments from the DUP Party of Northern Ireland that their position doesn’t change. But, their comments are not hurting the sentiment, so markets are convinced that the deal is finally on.
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