GBP/USD: Cable to the moon? Have we potentially secured a Brexit Deal?
Good Afternoon Traders, welcome back to EverythingFX!
The Great British Pound is currently trading at 1.26250 against the US Dollar during today's London session!
Wow. All I can say is just wow! Finally, some progress with the annoyance we know as Brexit! UK Prime Minister Boris Johnson met with Irish Prime Minister Leo Varadkar which seems to have been a successful meeting. A brief update from the minutes included a potential solution for the customs board as well as Irish consent with comments such as "We have agreed on a potential pathway which could lead to a Brexit deal" which suggest that the underlying issues at hand could have finally been resolved!
Let's take a look at the charts, for a technical perspective on where we are and potentially where we heading next! Well, it's blatantly clear that every single minor resistance that was once in Cable's way has now been taken out! With a 450 pip move in just under 2 trading days, we have now broken our resistance of 1.25000. However, I'm not taking any of this as a given yet as we need to sustain above this level so personally, I don't see any trades to be taken now as we are hovering in no man's land. So, I would need a re-test of 1.25000 potentially leading into the start of next week before looking for a position to take this higher! Do just trade with caution and realise is it Friday, the last thing you want is to be trapped in a position on a wick over the weekend, so if you missed this move, patiently sit on your hands and wait for it to play out leading into the new week!
One thing we need to factor in is that this has not yet been passed through the House of Commons as mentioned in this article written yesterday, follow this link to have a read what we could expect for the coming weeks!
Stay tuned to our Market news section, twitter feed and social media accounts for further updates!