Cable was riding on a roller-coaster for a few minutes at the beginning of the US session, jumping up and down within 1.2730/1.2830 range, with action being sparked by report that DUP has agreed on main points that opened way for final steps towards Brexit deal.
However, news proved to be false as the party leader dismissed the statement, but pound hasn’t given all gains back and currently ranging at 1.2800 zone. The latest move showed pound’s strong sensitivity on Brexit vibes, suggesting that strong reaction could be expected on final decision of UK/EU talks. The latest action spiked to new 5-month high (1.2838) but today’s action is so far shaped in long-legged Doji that signals indecision, as markets await final verdict.
Studies remain in bullish setup on daily chart, with repeated close above 200DMA to confirm bullish stance, however, near-term direction will be determined by the outcome of Brexit negotiations.
Res: 1.2800; 1.2838; 1.2865; 1.2900
Sup: 1.2770; 1.2706; 1.2656; 1.2597
