Pound catches a bid as UK PM Johnson intervenes on Brexit matters
It will be the first time Johnson gets involved in talks since June
Cable has jumped up by a little over 60 pips on the report in a move from 1.2870 to a session high of 1.2937 as buyers are keeping some optimism amid the latest developments in the Brexit saga this week.
UK PM Johnson is set to intervene as he will hold talks with European Commission president, Ursula von der Leyen, tomorrow. It will mark the first time he gets stuck in to talks since June, though it remains to be seen if this is actually a good thing.
For now, the pound is taking a glass half-full approach and viewing that as a positive signal that perhaps negotiations may see some added progress after talks this week.
For cable, the move higher sees price action climb back above its 100-hour MA (red line) @ 1.2869 and this puts buyers back in near-term control for now.
That said, unless there is a material push to break 1.3000, I would argue that the pound may very well stay dogged by Brexit risks and headlines in the sessions ahead.
That said, a push towards 1.3000 itself may only come if there are positive developments on Brexit, so there’s that to consider as well. And so the volatility continues…
Source: Technical analisys