Sterling recovers some poise; cable trades near session highs now

Technical Analysis

Author: Justin Low | gbpusd

Cable moves up to 1.3260 levels after touching a low of 1.3203 earlier

GBP/USD H1 15-03
Choppy price action continues for the pound as markets now have to wait on further developments ahead of a third meaningful vote next week. Buyers once again defended the key near-term support level @ 1.3216 with help from light bids close to 1.3200.

However, upside remains limited as well considering the fact that sentiment remains that May is more than likely to face defeat again when her Brexit deal is put to the test in parliament before 20 March.

The easiest route for the pound to break higher is for May to be able to sway lawmakers to vote in favour of her deal. That remains a tough ask for now so I would expect such doubts to keep a lid on any upside in the pound.

Putting that into consideration, expect more choppy price action over the next few sessions as mentioned earlier. For cable, I maintain my view that price should be supported by the key hourly moving averages while anything above 1.3300 should encounter selling pressures. The caveat to that view is of course, Brexit headlines to follow. Let's see how things play out over the next few days and over the weekend.

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