The pound was the star on Tuesday session. On the NY trade GBP reverses across the board on Brexit progress. EURGBP fell 0.80% found support at a parallel support at 0.8840.
Sterling surged 0.70% against CAD, 0.60% against JPY,CHF and NZD. After a last week’s clear upside break the cable is consolidating above the trading range, rose 0.30%.
Financial Times reported, Britain agreed to pay 100 billion euros to the EU to break the EU break-up fee, but the goal is to pay only half the scale. The Sterling was reversed in NY trade after the biggest complication was removed to a Brexit divorce settlement.
GBPUSD: Resistance 1.3400/1.3420 it’s 61.8 fib reaction (Sep-Oct fall).
GBP crosses technical overview:
The pound bulls are gearing up after the news, but spikes paused at 100EMA (weekly), 1.3380. If propels above the 61.8 fib reaction could open to 1.3480/1.3500. We are closely watching GBP in Wednesday’s Asia trade to catch the sudden spikes if available.
Support finds at 1.3280 and 1.3220. Support is moving gradually higher to 1.3220 from 1.3020.
In light of the higher low pattern (H4) we expect a bullish reaction.
View: sl 1.3220 targets 1.3500 and 1.3540
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