The bearish state on the Pound is strengthening as Brexit uncertainty remains in focus. The GBP/USD pair closed lower for a second consecutive week at around 1.2935, following BOE's decision to cut the UK’s growth forecast as a result of the Brexit-related uncertainty. Today, investors will most likely focus on the UK’s Manufacturing and Industrial Production, and most importantly, the Q4 GDP with the economy expected to have grown only 0.2% in the last three months. In the event that results are stronger than expected, there will most likely be a surge in the Sterling.
The Pound had a relatively slow day on Friday compare to the Thursday’s wild session. Price is trading between 1.2920 (S1) and 1.30 (R1), as the market is waiting for a catalyst for a potential break to either side. A break below 1.2920 could take the Pound lower towards 1.2880 (200-day moving average) and possibly even 1.2830 (S2). However, a break above 1.30 could give the bulls more momentum to take price towards 1.3050 (R2) and retest it.
Support: 1.2920 / 1.2830
Resistance: 1.30/ 1.3050