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GBP/USD recovers to 1.2778 after failing to break below the 15 November low
The pound is recovering a little after a poor showing yesterday with cable now rising to a high of 1.2778 on the day. Price is rebounding after sellers failed to drive a move below the 15 November low @ 1.2724 following the break of the wedge pattern yesterday.
The lack of significant Brexit headlines over the past few days is making it a bit tough to get a gauge of pound sentiment but given that Theresa May’s chances of winning a meaningful vote in parliament is still slim, I wouldn’t expect much upside for the pound still.
From a technical perspective, price is now running into resistance seen from the swing region around 1.2777 where the rebound in US trading stalled as well. Further resistance is then seen from the key hourly moving averages @ 1.2812 and 1.2816 respectively. Those will be key near-term levels to keep cable gains in-check ahead of Powell’s speech later in the day.