Cable touches a high of 1.3311 before backing off slightly
The pound is the best performing major currency on the day as it is holding steady with plenty of talks of an extension and May still going ahead with a third meaningful vote helping to provide the currency with some stability on the day.
Cable touched a high of 1.3311 as the dollar is also weaker across the board but price is seen backing off slightly now as the figure level is still proving to be a tough spot for buyers to sail through.
Price action has been looking more bullish in the near-term by staying above the 100-hour MA (red line) but any break above the 1.3300 handle is key. There is further minor resistance around 1.3330 but it is tough for the pound to make further strides unless headlines offer more support.
At this stage, we're still in wait-and-see mode as May will most definitely table yet another meaningful vote next week. European leaders are set to prepare an extension offer at the summit this week before following through with that next week depending on how May's plan works out. Even if it doesn't, suggestions now is that they will offer a longer extension but the real question will be can the UK justify the need for such a move?
There's still plenty of uncertainty that just won't go away this week with the government still in talks with the DUP. Hence, expect more of this choppy up-and-down price action to prevail over the next few days.
