GBP/USD hits fresh 1-month highs above 1.2600

The pound gained momentum in the market during the last hours and climbed across the board. GBP/USD broke above 1.2600 and reached 1.2616, the strongest level since December 14. 

The pair then pulled back toward the 1.2600 area, where is currently trading, up 0.80% for the day. Cable is rising for the fourth time out of the last five trading days. 

Today the British government announced that on Thursday will present the legislation regarding the Article 50, that the Parliament will have to approve (after yesterday’s Supreme Court ruling). If it passes the Parliament, the government would be able to invoke Article 50, triggering Brexit formal negotiations, that is expected to take 2 years. 

UK government to publish Article 50 legislation on Thursday - Reuters

Technical levels 

To the upside, resistance levels might be located at 1.2630/35, 1.2730/35 (Dec 13 & 14 high) and 1.2775 (Dec 6 high). On the flip side, support could be seen at 1.2550 (American session low / 20-hour moving average), 1.2485/90 (daily low) and 1.2415 (Jan 17 high / Jan 24 low).