GBPUSD hits session high on fresh Brexit news
Cable registered modest gains and hit session high at 1.3279 in early US trading on Friday, on renewed Brexit optimism, after news that UH FinMin Hammond is meeting official from Northern Irish Dup, in attempts to find solution for Irish backstop and gain further support for PM May’s plan, ahead of third vote in the parliament.
Downside attempts on Friday were again strongly rejected, suggesting that the downside remains protected for now and bullish bias persists.
Overall setup on daily chart remains bullish, though with weaker momentum, that would slow bulls.
Near-term action seeks for bullish signals on sustained break above thick hourly cloud (top of cloud lays at 1.3266), as the price penetrated again weekly cloud.
Close within weekly cloud would generate bullish signal along with formation of weekly bullish engulfing that would add to positive outlook.
However, Brexit remains pound’s key driver and next week events will be crucial, as eventual approval of existing plan would prompt UK’s exit on agreed time (29 Mar) while another plan rejection by the parliament would signal further extension of Brexit and increase uncertainty.
Res: 1.3300; 1.3330; 1.3349; 1.3381
Sup: 1.3266; 1.3249; 1.3202; 1.3172