Extended sideways mode on expectations for fresh news about Brexit
Cable trades within tight range in early Thursday, following two consecutive long-tailed Dojis (Wed/Tue) which signaled directionless near-term mode in absence of Brexit deal breakthrough.
Traders eye 12 Mar parliamentary vote on PM May’s Brexit deal, which are expected to provide stronger direction signals.
Current quotes (2/5 for the deal to be rejected and 7/4 for deal to be approved), maintain optimism that no-deal Brexit will be avoided that would also offer fresh support for sterling.
On the other side, news that circulate in the public, signal that deal will be rejected by up to 100 votes.
Conflicting news and expectations keep pound directionless, but weakening daily studies (formation of 5/10SMA bear-cross and south-heading momentum) keep in play risk of eventual clear break below cracked pivotal Fibo support at 1.3129 (38.2% of 1.2772/1.3349) that would signal continuation of pullback from 1.3349 peak.
Res: 1.3185; 1.3198; 1.3254; 1.3286
Sup: 1.3152; 1.3129; 1.3097; 1.3061