Technical Analysis

Pound extends gains on fresh demand; cable challenges the 200-hour moving average

The pound rises on fresh demand in the European morning


And that has seen cable buyers attempt another test of the 200-hour MA (blue line), an area which was rejected in overnight trading following May’s loss in the meaningful vote. Move above that level and near-term bias turns more bullish instead.

As it stands, sentiment remains that we’re headed for a Brexit extension while markets are anticipating that it will lead to either a second referendum or some form of revised Brexit deal – whether or not it be from May or another section of the government.

I reckon those hopes are what is fueling upside pressure for the pound in the early morning but once again, it must be noted that we still have the no-deal Brexit vote later and there’s also the risk that the European Union may not grant an extension; though the risks associated to both are still rather minuscule.

For cable, if price breaks above the 200-hour MA, we could see a move towards challenging the 1.3200 handle next and then the high closer to 1.3240 and 1.3280-85 next.

Articles You May Like

Stocks down but it could have been worse
Gold Prices Fall as Cisco, Walmart Earnings Cool Trade War Fears
The NZD is the strongest and the GBP is the weakest as NA traders enter
Zijin of Global Times: China will certainly retaliate from barbaric suppression of Huawei
Forex 1 Minute Scalping Strategy – Best Indicator for 1 Minute Forex

Leave a Reply

Your email address will not be published. Required fields are marked *