Cable stands at the front foot at the beginning of US session on Wednesday and rises above 10SMA (1.3220) in attempts to eventually register clear break, after upticks in past four days repeatedly failed to close above the moving average and generate positive signal. However, the pair’s price remains within the range of past two days and fresh direction signal can be expected on close above congestion top (1.3261), as rising bullish momentum on daily chart supports the action along with MA’s in bullish setup. Brexit story remains pair’s key driver, putting the technical signals at the second position. All eyes are turned today towards UK parliament’s indicative and non-binding vote on many subjects which range from UK’s post-exit relation with the EU to scenarios of no-deal divorce or even no Brexit. UK PM Theresa May stands on shaky ground and repeated failure of her plan could mean that her post as prime minister might end here. Strong uncertainty around the biggest political and economic move since WW2 in the UK keeps British pound in highly volatile mode, which was boosted by comments from top EU officials, who remind the UK about millions of people who signed petition to revoke Article 50 and those who want to stay in the EU, but also urged European parliament to remain open for longer Brexit extension. The outcome from today’s parliament’s vote could give more clues about possible solutions, but the final one seems to be still far.
Res: 1.3261; 1.3292; 1.3310; 1.3330
Sup: 1.3220; 1.3190; 1.3199; 1.3144
