GBP/USD: attracts an early bid with Trump and May to meet this Friday on Brexit plans

GBP/USD looks to be better bid in Asia today, printing an early bid from 1.2358 up to 1.2391 in thin trade while Brexit remains at the forefront of sterling markets.

With Obama now out of office and his stance of disparagement on a Brexit no longer a concern, Trump is opening his doors to Theresa May who will be meeting the 45th president of the United States this Friday where they begin discussion in respect to a trade deal for Britain outside of the US and that has to be a positive for sterling. Trump advocates a positive outcome for Britain outside of the EU. “You look at the European Union and it’s Germany. Basically a vehicle for Germany. That’s why I thought the UK was so smart in getting out,” argued Trump recently. 

GBP/USD levels

The 55 dam is located at 1.2401 today and this is the prime target that has been capping the price this year so far. On a break through the mid point congestion of the same handle, the next area of interest is of the same of the 1.25 handle with resistance reinforced here by the 100 dma. "We suspect that prices will need to go sub 1.2200/1.2165 however to alleviate immediate upside pressure," argued analysts at Commerzbank, adding, "We note that the intraday Elliott count is positive and we partially covered our shorts yesterday. Support at 1.1980 guards 1.1775 and then 1.1481 the recent spike low."

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