The British Pound pushed higher in the early Friday session after the US labor department reported soft inflation reading for April, reinforcing market expectations that the Fed may have to cut rates in the next 12 months. However, the Cable erased all of its gains courtesy of Brexit uncertainty. As per the latest report, talks between Labor and ministers over leaving the EU are set to continue today. Traders, as of late, will focus their full attention on any possible progress regarding Brexit, especially with the lack of any macroeconomic data in today's calendar.
The Pound has been trading in a range for the past few days with no apparent bias so far. The bulls need to break above the main resistance level 1.3050 (R2), which coincides with the 50 and 200-day moving averages, to establish a bullish market sentiment. On the other side, the bears will look for a break below 1.2975 (S2) for further potential weakness on this pair.
Support: 1.30 / 1.2975 / 1.2955
Resistance: 1.3025 / 1.3050 / 1.3080