Cable lower on the day but buyers still hold near-term control, what’s next?


GBP/USD buyers trying to keep price above the 1.29 handle

GBP/USD H1 21-10

And so far, they are managing that quite nicely as price is also somewhat supported by a near-term trendline support close to the figure level.

A firm break below the 1.29 handle will see buyers lose further momentum but the key risk for any upside move is a break below the 100-hour MA (red line) @ 1.2829.

The move lower at the start of the week comes after a bit of a dent in Brexit optimism after the weekend’s events – which saw a formal Brexit vote get delayed.

Looking ahead today, the government is likely to put forward a request of a “meaningful vote” and if that gets shot down by speaker John Bercow, then I reckon we may see a second wave of weakness in the pound.

If such a scenario does come by, watch out for the 100-hour MA as noted above.

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