GBP/USD closes in on the 1.3200 handle now
May's offer of a cross-party compromise is continuing to fuel further gains in the pound with cable now rising to a high of 1.3190 on the day. Price has also cleared the 200-hour MA (blue line) handily, indicating that the near-term bias is now more bullish.
The move higher here come as London traders get to their desks and reflects renewed optimism surrounding the Brexit debacle. That said, I'm not going to hold my breath in thinking that May's latest move will prove to be decisive in breaking the current deadlock.
With her Brexit deal falling dead on arrival over the last few months, it's not anything new for her to realise that she needs Labour support to get something through on Brexit. But I'm still skeptical on whether or not Corbyn will be willing to lend a hand.
At the same time, this will tear the Tory party up further from the inside. And I don't see how that's ever a good thing in the long-run.
