The Pound slumps towards 1.2860 as Theresa May’s Brexit plan faces local opposition. May’s Brexit plan may be at risk as local parties within the UK oppose May’s EU customs union arrangement as they fear such agreement will not allow the UK to make its own trade deals in the future. In addition to uncertainty surrounding Brexit, the Pound is also pressured by a strengthening US Dollar which has been pushing higher since last Thursday’s hawkish FOMC statement.
The Pound breaks below the 1.2908 support paving the way for a drop towards the next key support level at 1.2820. The break below the 1.2908 support also confirmed the break below the 200-period moving average signalling a shift in the general bias of the pair. Adding to the bearish momentum, the 13-period moving average have recently crossed below both the 50-period moving average and the 200-period moving average.
Support: 1.2908 / 1.2820
Resistance: 1.3094 / 1.3134