Cable inches higher as election vote comes under the spotlight

Technical Analysis

Cable moves to a high of 1.2849 on the day


There are whispers doing the rounds that Lib Dems and SNP may pivot to back an election now. However, without Labour support, I highly doubt the government has two-thirds majority to be able to get the votes they need later today.

That said, the pound is finding a bit of life on the day as cable pushes higher close to 1.2850, though the technical picture still leaves a lot to be desired.

Cable price action sits under the key hourly moving averages and that puts sellers in near-term control but with support at 1.2800 holding firmly, it’s still a tug of war between buyers and sellers as they battle for momentum.

The EU looks set to grant a three-month Brexit extension later today and while that is good news for the pound, it is very much expected and anticipated at this point.

The key mover today will come from the election vote. It’s a tall order for Johnson to get the votes he needs and I still don’t believe he has them. As such, be wary of any setback in the pound after the vote, vice versa if he succeeds.

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