TECHNICAL ANALYSIS

Cable climbs to new one-week high as EU reaffirms commitment to reach Brexit compromise


GBP / USD hits session high of 1.3050

GBP / USD S1 21-10
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You can take the EU’s remarks by considering the glass to be half full or half empty, but pound traders certainly side with the former as we see the cable push to a new one-week high. of 1.3050 in European morning trade.

In short, the remarks of European officials over the past hour are nothing new – in fact, everything that has been said has been said in the past – but they come at a tense time when there is still a feeling of limbo around Brexit talks.

So the claim that they’re going to keep talking seems to be what is calming book traders right now. Barnier mentioned that “a deal is within reach”, but also said that “equality of opportunity remains a fundamental concern”.

Therefore, the story of the glass being half full or half empty for the book dealers.

Frankly, I don’t think the EU’s remarks are a game-changer, but in the midst of dollar weakness today, it’s important to be wary of changes in the technical picture.

In this location, the jump higher in the cable also comes as we see clear price action at 1.3000, but also daily trendline resistance from September 1 – seen at 1.2993 today. hui.

It may also help trigger upside stops, although there is still short term resistance closer to 1.3064-83 in the pair. As such, this will be the next key region to watch if buyers are serious about aiming for a breakout.

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