GBP/USD gets a shot in the arm rising to a high of 1.2958 on the day
Pretty much a blink-and-you-miss-it moment as price shot up from just under 1.2900 to a high of 1.2958 before retracing to current levels of 1.2935. The high closed in on a test of the 200-hour MA (blue line) before being rejected.
There's no real headlines I'm seeing to have caused the spike but there is some recent commentary on Brexit that is starting to emerge that is highlighted here. The commentary there is starting to gain traction that a Brexit deal may be possible but as mentioned in the post, there's still plenty of unknowns along the way until the potential deal date of 21-22 March.
I want to be bullish on the pound on positive Brexit headlines but this doesn't feel like it has enough in it to be a sustainable move in my view. The fact that they are going to leave things right down to the wire is enough to keep traders second-guessing in fear of being wrong-footed.
But let's see what price action will tell us in the coming hours. Don't forget that there's still the US CPI report to come at 1330 GMT. For now, hold below the 200-hour MA and near-term bias still remains more neutral. Fall back below the 100-hour MA and it would turn more bearish again. On the flip side, move above the 200-hour MA and the bias turns more bullish and price could see a move towards 1.3000 next.
