Technical Analysis

Cable pares losses as pound recovers some ground

The dollar is also a little weaker to start the session


And that has helped cable get a lift back above 1.3000 to session highs of 1.3017 currently. The pair is now attempting to hold above the 200-day MA (blue line) and the 22 February low @ 1.2968.

There’s a bit of mixed fortunes for the pound this week with May’s imminent defeat tomorrow to prolong Brexit uncertainty until further notice, which is negative for the currency. However, the fact that it means we’re moving towards an extension and possibly a second referendum to resolve the impasse is a tailwind for the currency in the bigger picture.

That said, near-term reactions should still dominate the pound and Brexit landscape for now so I reckon we could look towards a bit more pressure for the currency ahead of tomorrow’s meaningful vote.

Cable is also benefiting from slight dollar weakness to start the session as the dollar index now falls flat at session lows, with the greenback slipping against the likes of the euro, aussie and kiwi to start the European morning.

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