The British Pound surged over 200 pips after UK PM Boris Johnson and his Irish counterpart, Leo Varadkar, released a statement indicating that there is a pathway to a Brexit deal, and announcing EU-UK talks will resume today. Later, Irish PM Varadkar added that he believes that it is now possible to come to an agreement before the end of October. Brexit-related headlines canceled out dismal UK data, after releasing several disappointing figures, mainly the Industrial and Manufacturing Production numbers. There is no data scheduled for release in the UK this Friday, but for sure, Brexit talks will provide enough catalysts.
The Cable bulls gathered momentum above 1.22 support level and pierced through multiple resistance levels including the 50 and the 200-moving averages, reaching as high as 1.2468. The buyers are back in complete control, as a pullback towards 1.24 is expected after such a big move, before resuming its upward momentum, possibly retesting 1.25. The bears, on the other hand, need to break back below 1.23 before regaining control.
Support: 1.24 / 1.2375
Resistance: 1.2465 / 1.25