GBP/USD breaks above 1.3200

GBP/USD gathered pace and broke above the 1.32 mark, reaching fresh 1-week highs as the pound continues to benefit from easing political uncertainty in the UK.

Cable has risen more than 200 pips throughout the day, leaving several resistances behind, and reached a peak of 1.3244 in recent dealings. At time of writing, GBP/USD is trading at 1.3240, recording a 1.87% gain on Tuesday.

On Wednesday, David Cameron will resign as UK Prime Minister, leaving way for Theresa May, who has said will respect the Brexit vote. On Thursday, the BoE will decide on monetary policy, gathering interest for first time in several years as Carney hinted at more easing this summer.

GBP/USD levels to watch

In terms of technical levels, next resistances could be faced at 1.3288 (Jul 5 high) and 1.3300 (psychological level). On the other hand, supports are seen at 1.2970 (Jul 12 low), 1.2849 (Jul 11 low), 1.2796 (31-year low, Jul 6) and 1.2700 (psychological level).