Near-term bias in cable is now more neutral
The pound is among the top gainers in the major currencies space today as it continues to hold firm after a bit of a rough ride in the past week. Brexit developments continue to be rather non-existent as talks between the UK government and the Labour party looks set to continue this week, with not much progress really being made.
The order of business in parliament this week doesn't have any notable Brexit happenings either, so expect another week of limbo as traders will be lacking key developments to guide price action.
As for cable, the near-term chart shows that price climbed above the 100-hour MA (red line) earlier today and establishes a more neutral bias currently. Minor resistance is now seen at 1.2943 before the 200-hour MA (blue line) comes into play at 1.2966. Those will be key near-term levels to watch out for in the sessions ahead.
In the bigger picture:
Price is still confined in a downwards channel so that will keep sellers confident but the key level to watch out for will be the confluence of resistance around 1.2960-68 (the 100 and 200-day moving averages). Combine those levels with the 200-hour moving average, it creates a key region to define where price will be heading based on technical levels as we sit and wait on fresh Brexit developments.
