Richard Perry
Independent Analyst
GBP/USD
Another session of significant volatility on sterling left Cable on a wild ride of a 220 pip rebound from the day low to close with a further 45 pips up of the day. Closing through $1.2780/$1.2800 resistance area now opens moves towards the $1.30s. There is an old basis of support around $1.3000 from March with the next key reaction high at $1.3175 meaning a band of resistance $1.3000/$1.3175. However the move is fuelled by the politics of Brexit right now. This could easily come crashing down this morning if the EU Council do not get to discuss a new Brexit deal proposal. Weakness has been bought into repeatedly in recent sessions, with the hourly chart showing the rising 55 hour moving average (this morning at $1.2745) repeatedly capturing intraday corrections for the past three sessions. Resistance initially at $1.2875 from yesterday’s high, but as we have been discussing throughout this week, if the politics change again, then technical levels will not matter one jot. Yesterday’s low at $1.2645 is the latest higher low.
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