GBP/USD Extended the rally on Brexit talks hopes

The GBP/USD pair extended the Thursday’s rally and today marked fresh weekly high at 1.3323 but retreated to current market price 1.3291 on Brexit talk hopes. Next on focus are the US CPI an Retail Sales data later on today , but whatever the figures would be, the main driver for the pair are the Brexit talks and the macro picture of the UK economy.

Technically speaking, the four hour time frame is showing that the rally is likely to continue in the short term. The price is above its bullish 20-day SMA and is trying to surpass the 100-day SMA. RSI and stochastic are loosing upward potential, but yet remain located withing extreme overbought area. First resistance comes at 1.3300 and a clear break of this level would open doors for testing the next one at 1.3350 (50% Fibonacci retracement of latest bearish run). This scenario will be guaranteed by potential bag figures on the upcoming US macro data. Looking to the downside, immediate support is seen at 1.3235 (former resistance) and in case of being conquered, next challenge for the bears will be the 1.3200 area.