### POV: EU Backstop Assurances Result In.....>

CABLE: ### POV: EU Backstop Assurances Result In GBP/USD Golden Cross

- GBP/USD has formed a "golden cross," with the 50-DMA above the 200-DMA for the

first time since June '18, aided by EU assurances on Irish backstop agreement.

Last such GBP/USD formation seen May 15 '17, with GBP rallying from $1.2896 to a

peak of $1.4377 on April 17 '18 (the 2018 high) in the wake of the formation.

- Rate charts a bullish engulfing candle, which could suggest an upward trend.

- The 14-Day RSI sits just shy of 60, off recent highs around 71. This measure

has barely operated in overbought territory (>70) during the run away from the

Jan 3 YTD lows, but should be monitored.

- Cloud techs are bullish, but daily and intra-day techs are more mixed.

- Down channel resistance from the 2018 high at $1.3309, followed by the YtD

high of $1.3350, present the next notable targets for bulls. With the 50%

Fibonacci retracement of the 2018 high to the YtD low sitting above at $1.3409.

- Brexit headlines present the main risk. The UK Brexit deal vote set to take

place after 1900GMT Tues. UK AG Cox's legal view on backstop permanency is

awaited, as are the views of the Eurosceptic ERG & the DUP.