GBP/USD touches a excessive of 1.2861 on the day
It is nonetheless all about Brexit for the pound however merchants to date are starting the day in a extra cool, calm and picked up method. The pound is squeezing out some positive aspects throughout the board however I do not anticipate the optimism right here to guide in direction of any key technical breaks if they aren’t supported by contemporary developments within the Brexit saga.
The most recent is that Theresa Could could possibly be headed for a confidence vote as letters wanted for that to occur are reported to be build up. The Solar reported earlier this morning that there are 42 already. The wanted quantity is 48 to set off the movement.
For now, cable seems to be headed again in direction of a take a look at of Friday’s excessive, which coincides with the 50.zero retracement degree of the drop seen on Thursday. That may no less than hold issues in-check previous to a take a look at of the 100-hour MA (pink line) @ 1.2892.
I reckon that is nonetheless very a lot the calm earlier than the storm for the pound. Even when there isn’t a management problem to return in opposition to Theresa Could, the probability of parliament passing the Brexit deal at current remains to be slim. And that sentiment will proceed to disclaim any vital positive aspects for the quid over the subsequent few classes.