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Oct 11 - 12:12 PM
GBP/USD - COMMENT-Sterling Runs Into Offers Near Fibo Resistance By 1.2670
First appeared on eFXplus on Oct 11 - 10:00 AM

Cable made a mad dash to a new 3-month high at 1.2685 after comments from Europe that EU Brexit negotiator Barnier received the green light to go into intense negotiations with Britain nL5N26W1AA.
The softer Brexit vibe opens the way for Europe to grant an extension to the UK based on credible negotiations on the backstop.
Recent rhetoric is GBP/USD, and to a lesser degree EUR, positive as the EU had been unwavering in its resolve to not renegotiate the existing Brexit deal.
The rapid rise to 1.2685 has elicited offers near the 50% Fib of 2019's 1.3380-1.1959 range and ahead of the 200-DMA at 1.2713.
GBP/USD bullish sentiment may fade as intense negotiations may not ultimately lead to a new Brexit deal, and even if an agreement is struck there remains significant uncertainty with regard to the UK parliament's ability to ratify a deal with the Europeans.
Despite the feel-good vibe and nascent GBP/USD strength, UK political, growth and Brexit risks remain and the recent GBP/USD short-covering may not lead to a pickup in bullish sentiment needed for a rise above 1.3000 nL2N26W0A2.


GBP Chart: Click here

Source:
Refinitiv IFR Research/Market Commentary

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