FxWirePro: GBP/USD open to further rise; key trend line provides support

GBP/USD likely to move higher,

• As expected, the pound has found support around 1.295 area, near the rising trend line. After two bullish back to back candles (hammer and Dragonfly Doji) failed to support price around 1.31 area, it was evident that the pound bulls would have to find support around the trend line.
• We have also been warning that the probability of good news over Brexit hitting the market very high and that is exactly what happened yesterday. The bulls pound the touchback on the possibility of a new agreement.

UK Prime Minister Theresa May held a meeting with EU Commission chief Jean Claude Juncker and after the meeting, it was announced that both parties have reached legally binding way to not make the Irish backstop a permanent one, which would trap the United Kingdom in a Customs Union with the European Union (EU).

Expect further volatility today,

• The revised agreement would be up for a vote in the UK parliament today. A failure to pass the agreement would pave way for several amendments like avoiding a no-deal Brexit, extending the Brexit deadline, and the second referendum.
• On good news, the pound could easily trade as high as 1.37 against the USD.