The British Pound hit a fresh multi-week high against the Dollar, getting a boost from comments from EU’s Juncker who said that if the objectives of the backstop are met through alternative arrangements, the backstop won´t be needed, adding that there could be a deal by the October deadline. Additionally, PM Johnson reported “progress” in talks with the EU, although without providing any detail, but that was enough for the market to keep the optimism going. Adding to the sentiment, could be the comments from the Irish Taoiseach Leo Varadkar that showed readiness to discuss the deal with his British counterpart during next week’s UN gathering. The combination of the recent positive events surrounding Brexit, will likely keep the Cable ahead of the Dollar in today’s session eyeing the alluring 1.26 in sight, and possibly even further.
The Cable bulls remain in control as they broke above two major resistance levels: 1.25 and 1.2550. The buyers remain in advantage to break to higher grounds possibly retesting 1.26 and 1.2650 in today’s session, as long as the recent uptrend holds. The bears on the other hand, will have to break below 1.25 in an attempt to stop this recent bullish momentum.
Support: 1.2550 / 1.25
Resistance: 1.26 / 1.2650