GBP/USD breaks to the upside and rises above 1.3550

The pound gained momentum across the board during the London fix after the BBC reported that PM May will say tomorrow that the UK is willing to pay EUR 20 billion for Brexit only if it has access to the single market. 

GBP/USD broke higher and climbed to 1.3572, reaching a fresh daily high. The pair remains near the top and only a few pips below the level it had yesterday before the release of the FOMC statement that triggered a really of the greenback. 

The short-term technical outlook improved significantly for the pound. The pair was trading in a range between 1.3515 and 1.3470, facing some bearish pressure but broke decisively to the upside. Now momentum favors the upside in GBP/USD that appears to be looking at 1.3600. A decline back below 1.3520/30 could change the current tone in favor of the US dollar.

Technical levels

To the upside, the immediate resistance is seen at 1.3600 (psychological) followed by 1.3620 (Sep 15 & 18 high) and 1.3655 (Sep 20 high). On the flip side, support could be located at 1.3515, 1.3470 (Sep 19 & 21 low) and 1.3405 (Sep 14 high).