Brexit-weary GBP/USD bulls are newly emboldened after today's UK July GDP beat nL5N2601SW provided fresh optimism, while EUR/GBP weakness on expectations of ECB accommodation at Thursday's meeting gave the pound additional strength.
Cable struck a trend high of 1.2383 as it rose above the 55-DMA and upper 30-day Bolli resistance at 1.2330/35 and into the daily cloud, which spans 1.2432-1.2348.
It's the first time GBP/USD has been above the daily cloud base since early May 2019.
GBP/USD bulls would gain momentum above the daily cloud top but need a rise above 1.2670, the 50% Fib of the 2019 range of 1.3380-1.1959.
But, recent EUR/GBP weakness, which has helped prop up cable, may be short-lived as Brexit anxieties are likely to keep the BoE on hold, muting any UK rate advantage as the ECB cuts rates further.
Brexit still holds sway over the UK political and economic landscape, which could weigh on GBP/USD.
As the Oct.
31 deadline approaches to leave the EU, GBP/USD vol remains high even though it is off recent extreme levels.
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