Cable rises to a high of 1.2779 on the day
There aren’t any fresh headlines driving the jump in sterling today but clearing resistance from the 200-bar MA on the 4-hourly chart @ 1.2718 was a good first step before rising above the 24 December high @ 1.2744.
It opens up a move towards some minor resistance around 1.2780-85 before further resistance is seen at 1.2800. Do be reminded that certain markets are closed today and most European markets that are open will observe half-day trading only.
Either way, I’m not going to attach much significance to the move here but it could also be attributed to further unwinding in dollar positions (cable short positions are still relatively stretched). The greenback has also slipped to a low against the likes of the euro, swissie and yen.
Against the latter, the dollar has fallen below the 110.00 handle now. Hold a close below and there could be further troubling signs for the greenback against the yen despite equities shaping up for a good close to the year.