Cable up to session high of 1.2969 on the day
A broad-based bid in the pound moves the quid to the best performing major currency on the day. Cable jumped from around 1.2930 levels to a high of 1.2969 on the day. A similar move is seen in GBP/JPY as well as the pair cracks above the 100-hour MA to a high of 143.65. EUR/GBP has also fallen back from near 0.9000 to 0.8970 currently.
I’m not seeing any Brexit-related headlines to have caused the move but in a time when the market is trading rather sideways with the trade rhetoric keeping things in-check and with the US jobs report coming up later, it’s one that can be chalked up to big money flows I reckon.
But the pound itself has looked perky as mentioned earlier so technically there is a reason for the currency to stay a little bit more bullish – barring any headline risks on trade/Brexit.
There’s some talk that Barnier is answering questions on Brexit at the moment but none of that is making its way to the main wires so I highly doubt it could have caused such a move.
As for cable, near-term resistance levels sit at 1.2982 followed by offers and swing region resistance at 1.3000. Meanwhile, GBP/JPY has the 200-hour MA @ 143.70 to navigate through in the near-term for a break higher.