GBP/USD: bulls eye 1.3340 as next target through 1.33 the figure

GBP/USD is currently trading at 1.3283, with a high of 1.3298 and a low of 1.3273.

GBP/USD was firmer on higher UK rates with the short Sterling calendar spreads at new YTD highs, in stark contrast to that of Europe's hence the offer in the cross.

In early Asia, the pound got a lift on the back of headlines stating that UK PM May's and Brexit Secretary, David Davis', will make an 'emergency' trip to Brussels on Monday to meet Michel Barnier, the EU's chief negotiator, and Jean-Claude Juncker, European Commission president ahead of the EU summit to try and break the deadlock. speculation will be that the EU will indeed offer a twp year transitory period, taking some of the pressure of Sterling in terms of a potential hard Brexit deal.

This week's summit will be critical for the pound, given the poor performance in respect to Britain stalling efforts to negotiate an exit deal with the EU after Brussels said last week the latest round of negotiations had ended in deadlock over money.

GBP/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that chances of further gains in the GBP/USD pair, however, are not yet confirmed according to technical readings, as despite rallying for five consecutive sessions, the daily chart shows that the price stalled around a bearish 20 SMA, whilst technical indicators have lost upward strength once reaching their mid-lines. 

There is near-term resistance at 1.3300 and support from the 100 SMA on the 4-hr sticks at 1.3260. Above the 50% retracement at 1.3344, GBP/USD bulls could look to hunt down a recovery to 1.3418/1.3524. A break to the downside targets 1.3200/1.3180 and 1.3000 ahead of a wide 1.2830 and the 38.2% retracement ahead of 1.2575 as the 50% retracement.