The British Pound fails to make a mark even though the US Dollar weakens. The US Dollar weakened in the last 24 hours following the release of a dovish FOMC Meeting Minutes which reflected a “less clear” monetary policy path ahead and showed that several Fed members are hesitant with raising rates due to the lack of inflationary pressures. Unfortunately, the Pound did not rise even with a drop in the US Dollar as Theresa May failed once again to gain support from the UK parliament for her proposed Brexit plan. For today, Sterling will be mainly driven by developments surrounding Brexit and the movement of the greenback with Fed's Powell said to make an appearance later during the day.
The Pound continues to range between the 1.2706 support and the 1.2818 resistance reflecting uncertainty between investors. The pair will begin to trend again after a break above or below the current range. The break above the 1.2818 resistance will pave the way for a rise towards 1.2870, while a break below the 1.2706 will pave the way for a drop towards 1.2671.
Support: 1.2706/ 1.2671
Resistance: 1.2818 / 1.2870