Technical Analysis

Cable falls to session low as markets wait on further Brexit developments

Cable touches a low of 1.3246 as MV3 is eyed


Despite buyers staying in near-term control, the 1.3300 handle remains a key resistance level at this point as Brexit developments go silent today with the government talking with the DUP to convince them to vote for May’s deal in a potential third meaningful vote tomorrow or Wednesday.

The DUP’s support is key to sway other voters at this point and euroskeptic parliament members remain adamant that things won’t change and May will eventually pull tomorrow’s vote from being tabled. The risk of that is likely weighing on the pound for the time being as headlines are currently few and far between.

That said, there is still some support for the pound and cable close to the 50.0 retracement level as we saw last week around 1.3216. The 100-hour MA (red line) also resides at 1.3220 now so that will offer additional support for buyers. Light bids are then noted around 1.3200.

Those will be the key levels to eye for in the sessions to come if you’re looking for any extension towards the upside or downside for cable.

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