The Pound closed positively yesterday as some of the Tory backbenchers and the opposition Labour party members are likely to unite against the hard Brexit. The lead runner for the UK Prime Minister Boris Johnson is all set to announce begin his campaign with a single motto of leaving the EU on October (be it with or without the deal). However, members of the parliaments (MPs) may propose a motion to stop hard Brexit either today or tomorrow. Today’s market sentiment will be dictated by political headlines as the UK is absent from the macroeconomic calendar.
The Cable bounced from the 50-day moving average and broke above 1.27 as the bulls are attempting to regain control. Ideally, the buyers need to break above 1.2815, which is also the 200-day moving average, to take back complete control. But the road towards that level won’t be very easy as 1.2750 proved to be a very strong resistance multiple times. On the other hand, the bears will try to fade the Sterling below the 50-day moving average and 1.2650 in order to reclaim their dominance.
Support: 1.27 / 1.2650
Resistance: 1.2750 / 1.2815