The British Pound starts the week in a positive mood, carrying last week’s strength into this one, despite the leak of Yellowhammer report during the weekend. The document showed that the UK will likely face shortages of food, fuel, medicine and disruption at ports, among other negative consequences in the case of a no-deal Brexit. The Sterling bulls however, dismissed the report as British Lawmakers treated it as an act of scaremongering ahead of UK PM Boris Johnson’s visit to the EU. The bullish sentiment will likely continue today pushing the Cable to highs not seen since the beginning of the month.
The Sterling broke above 1.2130, the 50-day moving average, and the short-term bearish trend line, putting a halt to the recent bearish momentum. As long as price remains above 1.2130, the bulls will likely push the British Pound higher to retest first 1.22 and possibly extend the gains towards 1.2250.
Support: 1.2130 / 1.21
Resistance: 1.22 / 1.2250