The British pound continued to go higher on Tuesday, testing the highest rate in the past four months. The GBP/USD pair growth was due to the possible Brexit delay. UK Prime Minister Theresa May invites the parliament to vote for Brexit without a deal or to postpone it if her agreement does not receive approval of the parliament.
On the other hand, on Tuesday, the head of the Bank of England, Mark Carney, said that the British Central Bank will strengthen economy support for the economy in the event of an exit without a deal. Delaying Brexit will ease political tensions, but worsen the state of the economy.
GBP/USD Technical Analysis
The British Pound climbed higher sharply and broke the 1.3160 and 1.3200 resistance levels against the US Dollar. The GBP/USD pair even broke the 1.3250 resistance area to move into a positive zone.
A high was formed at 1.3287 and the pair settled above the 50 hourly simple moving average. The pair is currently correcting lower towards the 38.2% Fib retracement level of the recent wave from the 1.3124 low to 1.3287 high.
However, there are many supports on the downside near the 1.3220 zone. There is also a bullish trend line in place with support at 1.3210 on the hourly chart.
Therefore, dips towards the 1.3210 and 1.3220 levels are likely to find buyers. On the upside, a break above the 1.3270 and 1.3280 resistance levels could push the pair towards the 1.3300 and 1.3330 levels in the near term.