GBP Goes Bid Amid Brexit Talks Optimism

GBP goes bid on the back of the aforementioned article from The Times, which noted that "European negotiators have indicated for the first time that they are prepared to start writing a joint legal text of a trade agreement with the UK." The EU is reportedly looking for deeper discussion surrounding the two major areas of conflict, state aid and fishing quotas, per the report, with suggestions that this week's round of talks (scheduled for Tuesday through Thursday) have been extended to include additional sessions to tackle the key areas of outstanding difficulty.

• Cable has added 38 pips amid broader USD underperformance and last sits at $1.2871. A clean breach of the 20-/50-EMAs at $1.2905/21 would allow bulls to set their sights on Sep 16 high of $1.3007, a key near-term resistance. Bears keep an eye on Sep 23 low of $1.2676.
• EUR/GBP sits -16 pips at GBP0.9073 as we type. Further losses past yesterday's low of GBP0.9025 would open up the psychological support at GBP0.9000. Conversely, bullish focus falls on yesterday's high of GBP0.9126 and above there would expose Sep 24 high of GBP0.9181.
• Apart from Brexit talks, today's address from BoE Gov Bailey, tomorrow's final Q2 GDP & comments from BoE Chief Economist Haldane and Thursday's final Markit M'fing PMI & another round of remarks from Haldane will provide interest in the UK.