GBP/USD surges to 1.2800 handle, tests 50-DMA for the first time since mid-Nov.

   •  Persistent USD selling bias helps gain strong positive traction on Monday.
   •  The GBP bulls seemed rather unaffected by uncertainties surrounding Brexit.
 
The GBP/USD pair extended its goodish intraday up-move and jumped to the 1.2800 handle, now testing 50-day SMA for the first time since mid-Nov.

The pair built on last week’s rebound from the vicinity of the 1.2600 round figure mark and continued gaining positive traction for the third consecutive session amid persistent US Dollar selling bias.

Expectations of a dovish Fed next year, along with a partial US government shutdown kept the USD bulls on the defensive and turned out to be one of the key factors driving the pair higher. 

Adding to this, possibilities of some short-term trading stops being triggered on a move beyond last week’s swing high, around the 1.2735-40 region, further collaborated towards accelerating the up-move.

Meanwhile, bulls seemed rather unaffected by Brexit uncertainties, with the broad-based USD weakness acting an exclusive driver of the pair’s strong positive momentum amid relatively thin liquidity conditions on New Year’s Eve.

Technical levels to watch