The cross rose to new multi-month high at 0.9189 on Tuesday, in extension of Monday’s strong bullish acceleration (the pair was up nearly 1.5% for the day on the biggest daily advance since 15 Nov 2018) fueled by rising fears of disorderly Brexit and all negative impact that will be caused.
Additional pressure on collapsing pound came from today’s comments of new PM Boris Johnson, who promised to lead Britain out of the EU on 31 Oct no matter what.
Strong rally in past two days broke above the last obstacles at 0.91 zone that opened way towards key med-term barrier at 0.9306 (29 Aug 2017 high).
Overbought conditions may delay bears, but corrective dips are expected to offer better buying opportunities, as pound’s sentiment remains very negative.
Markets already speculate about test of parity level (the pair reached the closest level at 0.9802 on 30 Dec 2008) despite lowered bets for such scenario.
Former high at 0.9050 (17 July) is expected to contain extended dips and keep bulls intact.
Res: 0.9189; 0.9203; 0.9226; 0.9306
Sup: 0.9142; 0.9114; 0.9050; 0.9000
