The Pound weakened across the board after UK’s parliament rejected all four Brexit proposals, increasing the probability of a no-deal Brexit. With only 11 days left for the official EU-UK departure, some among the UK lawmakers are preparing to put the PM May’s proposal for a vote, again, to possibly extend the deadline to May 22. In addition to further developments surrounding the Brexit, traders may also focus on the UK Markit construction PMI and the US durable goods orders to determine near-term trade sentiment.
The Pound surged towards 1.3150 (R2) after falling back to 1.3050 (S1) where price found a temporary support. If this bearish momentum continues, then a break below 1.3050 (S1) will take price lower towards 1.30 (S2). However, if price breaks back above 1.31 (R1), then we could likely see a retest of the recent high 1.3150 (R2).
Support: 1.3050 / 1.30 / 1.2960
Resistance: 1.31 / 1.3150 / 1.32