The Pound rose to 1.3195 yesterday as renewed hopes about a Brexit solution increased. The Sterling began fading the rally after the release of the March UK Markit Services PMI, which showed that the sector's activity declined for the first time in more than two and a half years with the index printing 48.9, well below the previous 51.3. Meanwhile, opposition leader Corbyn met with PM May, trying to agree on a Brexit deal. He spoke right after the meeting, saying that not much changed as expected and that there's a lot of talking still to be done. Today, UK will release March Construction PMI but traders will be eagerly waiting for any new Brexit development.
The Pound attempted to break below 1.3150 (S1) (50 & 200-day moving averages) during yesterday’s session, but price found support and kept the Sterling above this important level. If the bullish momentum continues, we could see price retesting 1.32 (R1) and potentially breaking higher towards 1.3250 (R2). If, however, 1.3150 is broken, it will open doors for further weakness towards 1.31 (S2) and possibly more.
Support: 1.3150 / 1.31
Resistance: 1.32 / 1.3250