Cable nears key resistance levels close to the 1.27 handle again
Cable is back up to test key daily resistance around 1.2670 and also near the 200-day MA (blue line) @ 1.2713 after EU chief Brexit negotiator, Michel Barnier, said that a Brexit deal this week is still possible.
The pound moved higher on the back of those comments with cable rising to a high of 1.2698 from around 1.2630 levels earlier.
A break above the key levels above will see buyers gather more momentum to drive the upside quickly towards 1.2800 and 1.2850 potentially.
It's all starting to fall back into place now for the pound but I still reserve some skepticism surrounding how viable a deal is and if Johnson can gather enough support in parliament, even with the DUP on his side.
There's certainly light at the end of the tunnel but is it a way out or an incoming train?
