GBP/USD hits a high of 1.2965, testing a break of the 200-hour moving average
There aren’t really any fresh headlines driving the move higher here as the only ones still doing the rounds are that talks between the government and Labour are starting to show more optimism. For me, it’s very much smoke and mirrors but headlines will be headlines and sometimes they’re enough to attract quick money flows.
Nonetheless, from a technical perspective, there’s also good news for pound buyers as cable is looking to establish a more bullish near-term bias. Price is now testing a break above the 200-hour MA (blue line) but there is resistance from the 24 April high @ 1.2963 to also contend with right now.
The 1.3000 handle will of course be the next key level to watch in case of any upside extension. In my view, it’s hard to really read much into directional movements in the pound when there is so little Brexit headlines – or at least fresh developments – at the moment.
That said, you can’t argue with the chart and a notable break here could precipitate some further gains in cable in the short-term at least.