Cable back at flat levels around 1.2785 to start the session
The pound has pared losses seen earlier in the day as hopes of a Brexit deal continue to give buyers an impetus to keep the recent rally going.
Cable is now back around flat levels, closing in on the day’s high at 1.2790 with resistance around the 1.2800 handle being eyed by buyers.
At the end of trading yesterday, buyers managed to hold a break above the 200-day MA (blue line) for the first time since May. That further reaffirms that the technical bias continues to be more bullish for the pound at the moment.
However, at the end of the day, this whole rally may yet be built on fluff unless a Brexit deal comes to fruition.
There is still room to roam to the upside for cable if the UK and EU reaches a draft Brexit agreement but unless Boris Johnson can get that past parliament in a vote, it will be all for nothing – as would this rally in the pound.