The Pound continues its rally as optimism regarding a Brexit deal surface the market. Most lately, the EU and the UK were able to strike a financial services deal for UK companies post Brexit. The deal allows UK companies to have access to European markets post Brexit under the condition that they operate under EU laws. Additionally, Brexit Secretary Dominic Raab announced that he sees the 21st of November as a reasonable Brexit deal target date, signaling his intentions of striking a deal with the EU rather than leave with “no deal”. For today, the focus will shift towards the US dollar given that the major NFP report is set to be released later during the day.
The Pound rallies further and breaks above the 200-period moving average siganling a major shift in the directional bias of the currency. The break above the 200-period moving average exposes the next key resistance level at 1.3110. Traders need to monitor the NFP report since positive US data will most likely strengthen the greenback and put downward pressure on the Pound.
Support: 1.2925 / 1.2831
Resistance: 1.299 / 1.3110