Warm words from Michele Barnier, the EU’s chief Brexit negotiator, once again pushed the British pound higher with cable touching an intraday high of 1.3059 but failing to hold above the R4 Camarilla level at 1.3048 on the hourly chart. This is now the key upside level which will remain in play for the remainder of this week. To the downside 1.2981 is the first significant support.
Moving to the 5-minute chart where the daily Camarilla levels have just updated it’s no surprise to see cable firmly anchored in the ‘buffer zone’ between 1.3038 to the upside (R1) and 1.3010 (S1) to the downside. And with the volume point of control at 1.3022, we can expect to see further consolidation in this price range, at least until Michele Barnier decides otherwise!
Looking ahead the only item of fundamental news for the British pound is tomorrow’s tier one Average Earnings release, but which like all the releases for the UK they are playing second fiddle to the Brexit saga.
