GBP/USD Forecast: Run To The Brexit Hill Of $1.3650

The GBP/USD currency pair has managed to recover from broad-based US Dollar strength on Tuesday, jumping about 1 percent from lows of $1.3220 backed by rumours of the UK government reaching the deal on Brexit bill with EU.

Cable broke major resistance at $1.33831 and easily overtook position well above $1.3400 level as Brexit bill agreement was seen as a major obstacle for further progress in Brexit negotiations.

Media are reporting Brexit bill of EUR 50-60 billion.

Once the GBP/USD settled well above $1.3315 representing 38.2 percent Fibonacci retracement of upmove from August to September 2017 highs, there are only minor psychological hurdles in currency pair before the cyclical top of $1.3620-$1.3650 level.

In fact, analysts from ING Bank predict GBP/USD to target sees $1.3600 level as the end of the year target.

There might be some psychological resistance at a round figure of $1.3500, but clearing that hurdle will confirm strong upward potential with targets at $1.3620-$1.3650.