The Pound rallies as Michel Barnier, EU's chief negotiator announces that a Brexit deal may be struck in less than two months. Additionally, the Pound was boosted following the better than expected quarterly GDP growth in the U.K. Quarterly GDP growth printed at 0.6% in July, representing the highest change in a year. For today, the focus will remain on economic data from Britain with the U.K unemployment rate and wage growth at the center of attention. As yesterday's GDP figures showed optimism, the market expects a beat in both the unemployment rate and the Average Earnings Index.
Following the positive news related to the Pound, the currency was able to break above the 1.30546 resistance level, exposing the 1.31484 level. The 1.31484 level is a key resistance level as it coincides with both a price action resistance level and the 1.272 Fibonacci extension. If the economic data releases from the U.K disappoint then the Pound's rally will slow down.
Support: 1.30356 1.29608
Resistance: 1.30546 1.31484