The British Pound dropped yesterday after the government was defeated in a vote on the timetable for Brexit, diminishing the possibility of the U.K. leaving the EU before the end of this month. With no major event and economic data scheduled today, traders will focus on any updates coming out from the U.K. as lawmakers rejected PM Johnson’s plan to accelerate his Brexit deal through parliament. Additionally, the Greenback may draw haven bids due to the risk-off mood in the equities and amid trade uncertainty, adding further bearish pressure on the Sterling.
The bulls lost their momentum after attempting to break above 1.30 multiple times in the past couple of days. The bears broke below medium-term bullish trend and now they are targeting to retest the 50-day moving average, which is around 1.28, or possibly even the long-term bearish trend-line, around 1.2680. The buyers need to protect those levels to remain in control in the big picture.
Support: 1.28 / 1.2680
Resistance: 1.29 / 1.30