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Sparks of hope are enough to return the bulls to pounds
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Loading...Today, Theresa May is in Brussels, encouraged to find a way to convince Parliament to vote in favor. The last positive ticks in the pound come after the comments of the Spanish Foreign Minister, who commented that "the agreement is currently being drafted."
Perhaps he knows something that others do not know, but I doubt. Any information on the Brexit talks has expired, and the Minister of Foreign Affairs does not have Spain at the center of the events.
What catches the eye is that Cable in the fourth consecutive session on the rise, reaching 1.3076 from its bottom at 1.2800. All this movement is supported by "empty" positive hints with very few arguments behind them. The fact that no one expects hard Brexit, but we have some real signs that they are aiming to avoid it.
Commerzbank says, "It seems that even the smallest thing is enough to make investors happy and the bulls to jump right in the pounds." We would like to warn against using it as an opportunity to take long-held long positions. no-deal seems to be behind the scenes, but obviously not so much because we still see chop movements at GBP/USD The risk of pounds by no-deal should not change the strategic vision of the currency.Also, market reactions illusion that markets are reacting more strongly to positive news than negative ones, suggesting that in the case of no-deal, the market reaction would be strong. "
On the bigger picture we see a rotating DeMark and holding more than 200 - the periodic day after a break of 23.6 Fibonacci. However, the price has entered a zone of resistance to the larger diagonal illustrating the downward trend.
Parliament should not allow Brexit no-deal. But that does not change the sentiment risk from now until March 29.
Trader Martin Nikolov Read more:
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