Price trades between the two key hourly moving averages
The 200-hour MA (blue line) @ 1.2915 is what is helping to limit any upside movement as the session begins but also buyers are finding support from the 1.2900 handle still. There's also the 100-hour MA (red line) @ 1.2894 to provide support and with the market awaiting trade headlines between US and China to hit the wires, suddenly there isn't much interest in cable following a topsy turvy session overnight.
Price spiked higher on news that a Brexit deal saw good progress but that report was later denied and the pound fell after but held onto some of its gains at least as price remains above 1.2900.
But with price now sitting between the two key hourly moving averages, there isn't a clear near-term direction as Brexit headlines can send price jumping either way. Stay above 1.2900 and the platform is more built for buyers, in my view.
At the same time, current upside is also capped by the 200-bar MA on the 4-hourly chart @ 1.2924. And just above there is the upwards broken trendline that now acts as a resistance level too. That sits just above 1.2950 currently.
It's going to be quite the month for pound traders if yesterday was a taste of what is to come. The month in trading will rely heavily on Brexit headlines, so brace yourselves for more action to come in the coming days/weeks.
In terms of actual Brexit risk events, there will be a EU meeting on 20 September where they could possibly discuss Brexit issues but the key timeline will be the EU Summit on 17-18 October.
Support
- 1.2894-00 (100-hour MA, bids)
- 1.2884 (38.2 retracement level on H1)
- 1.2857 (100-bar MA on H4)
- 1.2815 (swing region)
- 1.2792-00 (23.6 retracement level on H4, swing region, bids)
Resistance
- 1.2924 (200-bar MA on H4)
- 1.2955 (upwards trendline resistance)
- 1.2882 (76.4 retracement level on H1)
- 1.3000-03 (offers, 61.8 retracement level on H4)
- 1.3025-43 (swing region, 30 August highs)
