GBPUSD MOVES TO A THREE DAY TRADING HIGH

The GBPUSD pair has moved to a three-day trading high of 1.2743, as during the London market open, a report came in that German Chancellor, Angela Merkel, considers Theresa May's offer on EU citizens after Brexit a "good start' to negotiations.

Financial markets are now starting to price in a 'softer Brexit' deal for the United Kingdom, with sterling now becoming a major beneficiary, as traders re-price the potential risks to the UK economy.

The GBPUSD pair has become increasingly well supported on pullbacks and now retains a bullish short and medium term outlook.

GBPUSD has so far found intraday resistance at 1.2744, with the pair now testing above and below the weekly pivot point at 1.2734.

Above 1.2744, the daily time frame 20 period moving average is located at 1.2777, with the 50 period moving average, on the mentioned time frame, the foremost weekly resistance for the pair at 1.2865.