The Pound starts the week on a positive note as top UK lawyers and business leaders push for the idea of a second Brexit vote. A push for a second Brexit vote by key people in the UK is positive for the Pound as this will raise the possibility of such scenario. A second Brexit vote scenario might lead to the UK people voting down Brexit and decide to stay in the EU which removes most of the uncertainty in regards to the future of the British economy. In addition to any political developments related to Brexit, investors need to monitor the release of the Services PMI figure from the UK. Additionally, investors need to monitor developments related to the US midterm elections as this will affect the pair from the US Dollar’s side.
The Pound breaks above the 1.2990 resistance level following a positive Brexit atmosphere. The break above this level is significant due to the fact that it also represents a break above the 200-period moving average which is a signal of a shift in the long term bias of the pair. Depending on today's Services PMI figure, the pair will either continue to push higher towards the next resistance level at 1.3110 or turn lower back below the 200-period moving average.
Support: 1.2925 / 1.2831
Resistance: 1.299 / 1.3110