GBP/USD recovers further to 1.2450 ahead of Article 50

The GBP/USD pair refreshed daily tops near 1.2450 region, having found solid support once again near 1.2380 levels, in the wake of a better risk environment amid higher European equities and rising oil prices.

Moreover, the ongoing recovery in cable derived support from optimistic remarks from the UK Chancellor Hammond, after he said in an interview with BBC Radio 4 that he is confident UK will not get a ‘worst case’ outcome in Brexit negotiations, which eases ‘Hard Brexit‘ concerns.

However, the recovery may remain fragile, as investors brace for the UK PM May’s speech and EU President Tusk’s press conference, following which a two-year process of the UK leaving the EU will commence and could trigger political upheaval in the coming months.

GBP/USD Levels to consider            

Richard Perry at Hantec Markets explains, “The hourly chart shows a sharp change in outlook since yesterday afternoon with the hourly indicators negatively configured. The failure of the support band $1.2430/$1.2460 now means that the support between $1.2320/$1.2340 is now key within the range. Another strong bear candle today below the support would open $1.2250. The initial resistance is the $1.2430/$1.2460 old support. There is likely to be increased volatility today, but considering traders have had a while to prepare for this day, much should be contained.”