The Pound gained some traction in yesterday’s session as PM May spoke before the UK Parliament. Among her speech, she repeated that the government plans to honor Brexit's vote and leave on March 29, rejecting the possibility of remaining in the EU customs union. She added that they are still exploring alternatives to the backstop, and will return to the Parliament on February 26. If there is going to take place a new vote on a modified deal, it would then take place after that date. Today, the UK will release January CPI and PPI data, with inflation expected to have retreated below 2.0% yearly basis.
The Pound bounced from the 1.2830 (S1) support and currently trading just below 1.2930 (R1). The bears took a break from selling in yesterday’s session, but now they are looking to resume their bearish narrative. 1.2930 (R1) is the resistance level which they need to protect, a break above it could take price to retest 1.30 (R2). On the other hand, the bulls need to protect 1.2830 (S1) with everything they have got to keep this recent bullish momentum alive. A break below 1.2830 (S1) could possibly take price towards 1.2710 (S2).
Support: 1.2830 / 1.2710
Resistance: 1.2930 / 1.30