Sterling surged across the board on Wednesday after report that British and German governments have abandoned key Brexit demands, in attempts to open way for Britain to easier reach the deal with the European Union.
Surprise decision strongly boosted pound which rose 1.1% since the news were released and hit session high at 1.2983 (the highest since 31 Aug/Fibo 76.4% of 1.3043/1.2785 bear-leg).
Fresh bullish acceleration shifted near-term focus towards psychological 1.30 barrier, neutralizing downside risk after four-day 1.3043/1.2785 fall.
Daily techs improved as rally surged through a cluster of MA’s (1.2909/29 zone), while momentum continued to trend higher, deeply in positive territory.
Daily close above 1.2960 is required to fill Monday’s gap and keep near-term focus at the upside for renewed attempt through cracked psychological 1.30 barrier and retest of falling 55SMA at 1.3035 and last Thursday’s high and recovery rejection at 1.3043.
Res: 1.2983; 1.3000; 1.3035; 1.3043
Sup: 1.2930; 1.2910; 1.2847; 1.2807
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