GBP/USD touches a high of 1.3230
And is fast leaving the 100-day MA (red line) in its dust. Barring any Brexit headline surprises to come, this would be the first daily close above the level for cable since 26 April.
The pair got a lift following the upbeat UK retail sales data earlier in the day but there’s also the fact that softer Brexit headlines overnight has failed to keep the pound lower while the dollar continues to be offered on the week.
For cable, the pair now looks to be running away back to the topside if it can secure a daily close above the 100-day MA and the 1.3200 handle. Hold above the resistance level @ 1.3213, and it would be even better for buyers.
The next key resistance level will come from the swing region and offers at around 1.3290 to 1.3300, followed by the 38.2 retracement level @ 1.3317. The July high @ 1.3363 will then be eyed next.
Right now, the technical picture and part of the fundamental picture (economic data) is supportive for a higher move in the pound. However, the caveat in all of this is that Brexit headlines trump everything else.
A deal or no deal outcome will be the ultimate driver of pound sentiment until Brexit negotiations are finally sorted out and that will continue to add volatility in trading the pound over the next few months still.