GBP/USD races to a excessive of 1.2911 earlier than backing off the determine stage
There wasn’t any actual notable headline for the spike from 1.2880 however consumers are simply testing the waters as soon as once more in a transfer increased. Resistance and gives are seen round 1.2900-10 adopted by the 1.2925-30 stage. Of observe, the 100-day MA additionally offers every day resistance @ 1.2890 in order that might be one other stage to be careful for as nicely.
The pound continues to consolidate above the 100-hour MA (purple line), which it examined earlier and consumers held out, however under the 1.2900 deal with for now. I’d anticipate quiet optimism within the coming periods for the quid with Theresa Should still biding her time in arising with a “Plan B” on Brexit by Monday.
So long as value holds up above the important thing hourly shifting averages, it feels prefer it’s solely a matter of time earlier than a agency break above 1.2900 comes into play. Bear in mind, markets are feeling extra upbeat that probabilities of a no-deal Brexit consequence is diminishing so that would assist feed into additional positive factors within the pound in the interim regardless of silence from No. 10 proper now.