The Pound is experiencing a strong rally this morning. GBP/USD has shown a gain of 152 pips from yesterday’s lows and today's high so far, trading at 1.2950 this morning, mainly for two reasons: comments about the Brexit from May and Lidington, and mixed UK jobs data.
After yesterday’s disastrous performance of the GBP, which lost over 1 percent at one point, there were renewed hopes that Theresa May will make a Brexit deal with the European Union by tomorrow. Also, the cabinet office spokesman, David Lidington, spoke on BBC Radio 4 and revealed that a Brexit deal was “almost within touching distance.”
The second reason, the UK economy wage growth has shown a good jump of 3% compared to previous 2.8% in the average weekly earnings, and 3.2% vs. a 3.1% read in the weekly earnings ex-bonus (both measures are referred to 3 months, year to year, up to September). However, the unemployment rate came at 4.1% compared to a forecast of 4%.
Regarding GBP/USD, the technical levels to consider for today are very wide because of possible Brexit events coming in the news. The level on the downside is 1.2695, and the level on the upside is 1.3215