Cable rises to a session high of 1.2128 and challenges the 100-hour MA
Price is now contesting key near-term resistance levels in the form of the 100-hour MA (red line) @ 1.2124 as well as the 50.0 retracement @ 1.2134.
Break above that and buyers will regain more near-term control of the pair with a potential move towards the 200-hour MA (blue line) @ 1.2184 eyed next.
As it stands, rebel/opposition lawmakers have cleared the first hurdle in trying to stop a no-deal Brexit via legislative measures. The next hurdle will be to stop Boris Johnson from calling a snap election later today.
Johnson needs two-thirds majority for the motion to pass but so far Labour lawmakers aren't taking the bait as they are constantly reiterating that they won't be voting for an election today and will likely only do so after a law is passed to avoid a no-deal Brexit.
In the near-term, there is some hopeful optimism for the pound but it is still tough to see how any of this can translate to a no-deal Brexit being officially ruled out.
It is still a messy time for UK politics and I'd be wary of getting too carried away with gains seen over the past 24 hours.
