Sterling strengthened against dollar on Tuesday, as investors assessed the chances Prime Minister Boris Johnson can strike a Brexit deal with the European Union before Oct. 31. Analysts said investors were continuing to reverse their bets against the currency as they worried about being caught on the wrong side should the pound further extend a rally it started last week Johnson is required by a law passed this month to ask the EU for a three-month delay to Brexit if a deal is not approved by Oct. 19, but British media reported that his team are looking at ways to circumvent it. Johnson said on Monday Brexit would happen on Oct. 31, with or without a deal.
GBPUSD is in a good mood of up trending and has broken up the 1.237x handle; it just reached currently its highs at 1.2527 after some times under pressure . The price has been trading in the earlier Asia trading session of today in a corrective mode; in our technical point of view, GBPUSD could head down to further lows at around 1.2430-1.2450 before FOMC statement of later today to the European trading session. By expecting that Fed cuts 0.25 basis point for their interest rate decision and if that expectation would be matched as expected, then further up move for GBPUSD is on the go. The next highs for GBPUSD is to see at 1.2570.
Take your look at the below depicted chart for further reference: