The Pound closed the day negatively yesterday after the UK Construction PMI came in at 50.6 missing the 52.6 forecast. Additionally, the lack of any positive news related to Brexit dented the market sentiment even more and didn’t let the bulls take control. In today’s economic news, the BRC Retail Sales Monitor came in at 1.8% vs -0.2% beating expectations, so investors will now shift their focus to the UK Services PMI which is set to be released in the morning.
The Pound is looking weak as it broke below the bullish trend line (orange line) and the 1.3050 support level, paving the way towards the 1.30 (S1) psychological round number. If the bears could successfully break below that level, then this bullish trend would be considered broken, which in turn could weaken the price even further towards 1.2920 (S2). However, if price breaks back above 1.3050, a retest of the 50-day moving average (1.31) would be on the cards.
Support: 1.30 / 1.2920
Resistance: 1.3050 / 1.3150