The pound climbs to session highs for the day in quiet trading
There’s no major headlines driving the move here as the pound goes in search of a break higher, after having been driven lower yesterday towards a test of the key hourly moving averages just under the 1.2400 level.
The key near-term levels held as buyers leaned on that region to maintain a more bullish near-term bias, before consolidating around 1.2450-80.
But amid some tepid tones in the market and quieter trading, cable is now racing to highs of 1.2517 – just shy of the high seen earlier in the week at 1.2518.
I’m not too sold on this move but month-end flows are a bit tricky to navigate through. From a technical perspective, breaking through the resistance region around 1.2515-25 could very well set off the next leg higher in the pair.
However, fundamentally I’m not really liking the pound all too much as UK lockdown measures are set to still persist for quite a while yet (that will put pressure on the economy) and there are also Brexit risks to consider in the coming weeks for the pound.