May makes Brexit speech in Florence
As the market await UK PM May's speech in Florence, the pair is trading nearer highs for the day.
The high for the day today has extended to 1.3595. The NY session high reached 1.3586 so far. The low for the day stalled at 1.35366 in the London morning session. The 59 pip range is well below the 22 day average of 112 pips. The market is waiting.
Technically, looking at the daily chart, the post Brexit highs came in at 1.3443 to 1.3532. The holding of support against the highest post-Brexit corrective high at 1.3532 is a bit more bullish for the pair (the low stalled 4 pips from the level). Should the price dip below that level through May's speech, it weakens the bulls case a bit. The 1.3479 was a swing high in July and the September 2016 low was 1.34439. The low for this weeks trading stalled just ahead of that level at 1.3451. Breaks of those levels weaken the technicals for the pound. Be aware.
On the topside, the highs from last Friday and Monday stalled at 1.3616 and 1.3618 respectively. The price on the FOMC spiked above those levels to a high of 1.35547 but quickly retreated on what was thought to be more hawkish comments and projections from the Fed. A move above those levels are the next upside targets.
