Breaking: GBP now up more than 3% vs. USD - Biggest two-day rally in more than three years

The British Pound extended its rally against the USD on Friday on hopes of the United Kingdom (UK) and the European Union (EU) reaching a Brexit deal before the October 31 deadline.

As of writing, the GBP/USD pair was up 1.1% on the day at 1.2575. With today's upsurge, the pair is now adding more than 3% since Thursday, registering its biggest two-day rally since June of 2016.

In the last hour, following his meeting with British Brexit Secretary Barclay, the European Union (EU) Chief Brexit Negotiator Michel Barnier said that they had a constructive meeting and added that they need to show "vigilance and determination" to trigger the latest upsurge in the pair.