The pound gains some ground in early morning trades
Price touches a high of 1.2173 on the session as the pound stays firm since the end of last week. However, key near-term resistance levels are still at play nearby.
For now, buyers are running into the swing region around 1.2170-75 with further resistance seen closer to 1.2190-00 as well as offers around the figure level.
Although buyers are in near-term control, it’s hard to see fundamentals lending a strong tailwind for the pound to push much higher amid Brexit uncertainty still lingering.
I reckon the nudge to the upside over the past few sessions has more to do with positioning flows as we wait on political developments to unfold in the coming weeks when lawmakers return from the summer break.
At this juncture, there’s plenty of talks about lawmakers trying to stop Johnson’s no-deal crusade so we’ll have to see how that plays out over the coming weeks.
The risk for buyers now can be defined and limited by the key hourly moving averages, both of which sits closer towards the 1.2100 handle. Meanwhile, topside risk for sellers can be defined and limited around 1.2200 as well as the 31 July high @ 1.2250.