Entering into US session, Swiss Franc and Euro remain the strongest one for today. However, Sterling is starting to lag behind.
Indeed, the Pound is suffering some heavy selling on Brexit under certainties. UK Prime Minster Theresa May is yet to unify his cabinet on the backstop plan over Irish border. Ahead of their meeting today, it’s widely reported that May is at odds with Brexit secretary David Davis, who threatened to quit.
EUR/GBP is showing some strength by breaking 0.8808 resistance. H and 6H action bias have both turned upside blue. But they can be force signal in ranging consolidation markets.
Hence, we’d wait for a firm break of 0.8844 resistance to confirm resumption of rise from 0.8620 to go long. Target is 0.8967 key resistance level.
