- GBP/USD holds steady above 1.29 after wild swings.
- 100-HMA limits the recovery attempt from trendline support.
- Brexit news to dominate ahead of Johnson-von der Leyen meeting.
GBP/USD witnessed almost a big figure move over the last hours, in the wake of the incoming Brexit headlines ahead of the critical meeting between the UK PM Boris Johnson and the EU Commission President Ursula von der Leyen later on Wednesday.
The meeting is PM Johnson’s another attempt to reach an agreement on the post-Brexit transition trade deal with the Union, as the EU leaders meet on Thursday and Friday. The discussion about the future relationship with the UK will be on top of their agenda.
Amid conflicting reports from both sides, GBP/USD experienced good two-way businesses, initially accelerating Tuesday’s declines to reach a five-day low of 1.2864 after media reported that the EU leaders are likely to call out no breakthrough on the Brexit negotiations.
Later on, the bulls sprung back to life and lifted the cable sharply to daily highs of 1.2980 on the UK’s commitment to stick to its efforts for a trade deal with the bloc beyond the October 15 deadline set by Johnson.
From a technical perspective, as observed in the hourly chart, the price staged a solid rebound, having found strong support at the rising trendline support at 1.2864.
Meanwhile, the pullback lost legs just below the 100-hourly moving average (HMA) at 1.2985. To the upside, the bulls need a sustained move above the latter in a bid to test the 1.3000 level.
On the flip side, an immediate cushion is seen at 1.2900 levels, below which the above-mentioned rising trendline support could be back into play.
GBP/USD: Hourly chart
GBP/USD: Additional levels