The Pound faced a heavy sell-off yesterday as hopes that the UK could prevent a no-deal Brexit decrease by the hour. The UK House of Commons passed by just 1 vote a bill to prevent such a scenario, that needs yet to go into the House of Lords. Meanwhile, PM May and opposition leader Corbyn continue their 'constructive' talks, but they are far from tackling the Brexit deadlock. The Parliament could meet again next Monday, but they need to come up with something before April 10 EU summit if they want to extend Brexit beyond the April 12 deadline. Today, there aren’t any relevant economic data coming out from the UK, so as of late, traders will be focusing on any new Brexit development.
The momentum on the Pound turned bearish when price below an important support level 1.3150 which also coincides with the 50 and the 200-day moving averages. As long as price is trading below 1.3150 (R1), then we could potentially see 1.3020 (S3) retest. Only a break above 1.3150 (R1) will shift the momentum back to the bulls.
Support: 1.31 / 1.3050 / 1.3020
Resistance: 1.3150 / 1.32