Cable continues to make fresh seven-week highs on the day
The pound hit a fresh seven-week high of 1.2455 against the dollar as gains in cable extend to nearly 1% on the day now. It’s been a solid past two weeks for the pound since hitting a three-year low under 1.2000 at the start of last week.
Currently, price is challenging minor daily resistance around 1.2442 but the big level that buyers are aiming is the 1.2500 handle. Sitting nearby, is the 100-day MA (red line) @ 1.2516 and that will prove to be a key level for sellers to defend.
There isn’t much fresh news that is driving the pound higher today as Brexit developments continue to sit in limbo for the most part. I still hold by my view of anticipating a range between 1.20 to 1.25 ahead of October and this still fits into that narrative.
If we do start to see a break above 1.2500 and the 100-day MA, then perhaps that is telling a different story as that will mean we are starting to see significant repricing in risks related to a no-deal Brexit in my view.
For now, the quiet period is still helping to see the pound enjoy its day in the sun. Let’s see how resistance around the 1.2500 handle fares before reassessing the nature of the run higher over the past two weeks.