GBP/USD higher in early Asia on PM May's 'emergency' trip to Brussels

The pound is up 22 pips and through 1.33 the figure, rallying in illiquid markets at the start of this week, where all eyes will be on the EU summit and also U CPI/jobs data.

The weekend news tied to the pop in sterling is potentially linked to UK PM May's and Brexit Secretary, David Davis', 'emergency' trip to Brussels on Monday to meet Michel Barnier, the EU's chief negotiator, and Jean-Claude Juncker, European Commission president ahead of the EU summit to try and break the deadlock.

The summit is seen as a critical point in Britain’s stalling efforts to negotiate an exit deal with the EU after Brussels said last week the latest round of negotiations had ended in deadlock over money.

"EU leaders could hand May an olive branch at the summit by launching their own internal preparations for a transition to a new relationship with Britain.

May spoke to German Chancellor Angela Merkel earlier on Sunday and the two agreed on the need for continued constructive progress in the exit talks, an earlier statement from May’s office said," - RTRS

GBP/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that according to the 4 hours chart, the pair managed to settled above the 61.8% retracement of the previous week's decline. "While the 20 SMA and the 200 EMA converge a few pips below the level and while having lost upward strength, technical indicators remain within positive territory, all of which keeps the risk towards the upside. The pair topped this last week at the 1.3330 region, with gains beyond the level required to confirm additional gains towards 1.3400," Valeria added.