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Cable holds at one-week highs as buyers show poise to keep the upside momentum going

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GBP/USD holds above 1.2150 as the pound is firmer on the day


The pair is now trading at fresh one-week highs after briefly touching 1.2161 in the past hour and is continuing to hold above 1.2150 for the time being.
Buyers have accomplished quite a bit in the session so far today, having broken back above the 200-hour MA (blue line), the trendline resistance and the 23.6 retracement level.
All of that points to a more bullish near-term bias and if buyers can keep price above those levels, there is every possibility for price to extend higher still in the short-term.
I firmly believe that the Brexit focus is taking a breather right now as we aren’t making much headway considering that lawmakers are on their summer break. But I would expect those sensitivities and risks to be heightened again next month as we hash out the odds of UK MPs working to stop Boris Johnson from pursuing a no-deal Brexit.
As such, I would still expect the pound to be pressured once that comes back into focus but in the mean time, you can’t argue with the technical levels and I’m also looking at EUR/GBP as another reason for the pound’s outperformance:

The continued track lower towards 0.9100 suggests that the pound is still holding up well and until we see more of a turnaround there, I wouldn’t pick at going short against the quid just yet ahead of September – though I would still be searching for rallies to sell into until something changes on the Brexit front.

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