Pound stays bid as buyers defend the near-term bullish bias
The pair now runs into minor resistance from the 61.8 retracement level @ 1.2945 with further resistance seen from the upwards trendline resistance around 1.2955 as highlighted earlier here.
There isn’t a specific headline that I can see to have caused the sudden spike but pound buyers have been rather resilient across all pairs so far:
They’ve been defending key near-term levels and that has been one of the reasons why the pound is still looking perky despite falling off from yesterday’s high. In GBP/JPY, buyers defended the 200-hour MA in trading today while in GBP/CHF, buyers defended the 100-hour MA.
As long as key near-term levels hold, that still bodes well for the pound. And with risk sentiment starting to turn around, we could see further easing in haven flows in the currencies space as well.
But once again, be advised that pound pairs are extremely sensitive to headline risks and now with the US-China trade rhetoric adding to Brexit risks, it’s making for a tricky time to trade. So, make sure you define and limit your risk with technical levels.
Strictly speaking from a technical perspective, the defense posed by buyers across multiple charts is encouraging for further upside price action to say the least. However, be wary of headline surprises.