The Pound gained over 100 pips yesterday after cross-party talks between the Tories and the opposition Labour party leader Jeremy Corbyn are likely turning to break the Brexit deadlock, as not only PM May’s spokesperson but the EU lawmakers also expect the exit proposal to roll out soon. However, the caution about Brexit remains on the card as some of the UK lawmakers are still trying hard to remove PM May from her position. Looking ahead, the UK will be releasing its monthly PMI numbers but all eyes will be on the US FOMC monetary policy meeting.
The Pound broke through a key resistance level yesterday, but the bulls still have some challenges up ahead to completely break free from this recent bearish trend. 1.3010 (R1) should act as a support now if the bulls want to keep their momentum alive. 1.3050 (R1) and 1.3085 (R2) are the next targets for the bulls to take out. A failure to hold above 1.3010 (S1), will likely put an end of this current bullish momentum, taking the Sterling back below 1.30.
Support: 1.3010 / 1.2980
Resistance: 1.3050 / 1.3085