Cable slips to a session low of 1.3323
The pair slipped to a low of 1.3225 yesterday before observing a modest rebound back towards 1.3400. However, the move stalled near the figure level with the 100-hour moving average (red line) also helping to limit the rebound.
Since then, sellers have seized back near-term control and we are seeing a bit more of a nudge lower to start the session but nothing too major as of yet.
Cable is down by 0.4% but there's still no big chase in driving the pair towards 1.3200.
As such, buyers are still very much "in it" as we await more Brexit developments.
It is all about headline risks for the pound this week as the Brexit saga drags on. There was no deal yesterday and UK prime minister, Boris Johnson, is now set to head towards Brussels to see if there can be some form of compromise to be struck.
Both parties are not giving much away in terms of technical details but the political act is still wide open for interpretation at this stage. The optics of Johnson traveling to Brussels can be said to be positive, but we can only still wait and see.
In any case, pound buyers aren't giving up just yet. Cable is still sitting well above its 50.0 retracement level of the swing move higher since November @ 1.3194 and the 100-day moving average is seen @ 1.3073.
Sellers may be keeping near-term control now but we are yet to see any material no-deal pricing come forward. That said, it also highlights the risks and positioning skew in the market right now so there's that to consider.
