GBP/USD inter-markets: extra gains above 1.3250

Cable has seen its upside renewed since Monday, gaining around 2 cents to today’s tops in the vicinity of 1.3240 despite the somewhat bid tone surrounding the greenback. The main source of GBP strength seems to come from the slump in EUR/GBP, breaking below key support levels and triggering stops on its way.

Supporting GBP’s up move, yields in UK money markets are navigating a ‘sea of green’ for the time being.

In addition, Owen Smith, UK’s Labour Party leadership candidate argued he would oppose the triggering of Article 50 without parliamentary vote, collaborating with GBP’s upbeat sentiment.

Regarding GBP/USD, further gains could materialize in case of a break above the resistance line from July’s top, today at 1.3250, ahead of the 23.6% retracement of the June-July drop in the 1.3320 area, and then 1.3373, August’s high so far.