Strong rally on the Pound

The GBP/USD has been supported by the latest developments around the Brexit negotiations. During the last few days the volatility on the pair has increased greatly, taking the price to a low around the 55 day EMA (purple line) around the 1.3200 zone. From there the GBP/USD bounces rapidly to the upside as the news about a potential soft Brexit hit the wires. The rally on the GBP/USD has taken the pair to a high around the 1.3447 level, but the price currently settles around the 1.3411 zone. The bullish momentum is still in place and the pair may try to visit the 1.3500 level, but in order for the bullish trend to come back in the midterm, the price must break above the peaks at the 1.3600 zone. To the downside, the most relevant support level is at the 1.3300 level, zone that was resistance and could change to support.