GBP/USD rises back above 1.2400

The pound gained momentum across the board during the last hours and erased losses. Cable climbed back above 1.2400 while EUR/GBP dropped back toward 0.8900. 

GBP/USD reverses 

While US elections are attracting practically all market’s attention, in the UK, the Supreme Court accepted the government appeal regarding Article 50. It is expected that the Court will issue a ruling on Brexit around New Year. The US dollar lost some momentum in the market, except against the yen amid an improvement in risk appetite. 

GBP/USD bottomed at 1.2360, the lowest level since last Thursday but then turned to the upside. The pair rose to 1.2415 and it was trading at 1.2405/10, marginally higher for the day. 

Levels to watch 

To the upside, resistance levels might be seen at 1.2440 (daily high), 1.2495 (Nov 7 high) and 1.2555 (Nov 4 high). On the opposite direction support could now located at 1.2360 (daily low), 1.2330 (Oct 18 & 19 high) and 1.2270 (Oct 27 high).