GBP/USD jumps to weekly highs above 1.3000

• Pound soars after comments from EU Barnier about Brexit. 
• GBP/USD rises more than a hundred pips, to test 1.3000. 

The pound rose sharply across the board following comments from the European Union negotiator, Michel Barnier. He said that they are ready to offer a partnership to UK and they want a Brexit deal. GBP/USD jumped from 1.2880 to 1.3009, hitting the strongest level since August 3. 

From the peak pulled back modestly and as of writing was trading at 1.3000, holding the bullish tone intact. Intraday technical indicators jumped to extreme overbought reading but the momentum remains intact and a consolidation on top could point to more gains. 

The pound is having the best day in months against the US dollar and is also higher versus the euro and the Swiss franc. The rally in GBP/USD also boosted the EUR/USD pair.

GBP/USD Levels to watch 

The pair rebounded today from a key technical resistance located around 1.2850, the 20-day simple moving average and a short-term uptrend line from August. If cable drops below, more losses seem likely. 

To the upside, the immediate resistance is seen at the 1.3010 area, followed by 1.3040 and 1.3070. On the flip side, support levels might now be located at 1.2935 (Aug 22 high), 1.2900 and 1.2865 (uptrend line from Aug lows).