The Pound continues to push lower for the week as traders fear a no-deal Brexit may be the dire outcome of the British-European negotiations. Somehow, it feels like it will be an impossible duty for Theresa May to reach a Brexit plan that will satisfy the EU and key political parties within the United Kingdom. Most recently, May was able to reach a solution with the EU in regards to the Irish border, but this solution does not seem to satisfy local figures. Many local Brits are opposing May’s EU customs union arrangement as they worry such arrangement will block the UK from making its own trade deals in the future. For today, in addition to developments surrounding Brexit, traders need to monitor the release of key economic data from the UK with the UK Unemployment rate and Wage Growth (Average Earnings Index) taking center stage.
The Pound's bearish momentum continues as the 50-period moving average break below the 200-period moving average. For now, prices are bouncing off the 1.2840 support level but they are expected to face some resistance when they reach the 13-period moving average. Traders have the opportunity to enter with the bears as prices tap the 13-period moving average, or they can wait for the break below the 1.2806 support which will pave the way for a drop towards the next support level at 1.2720.
Support: 1.2806 / 1.2720
Resistance: 1.2908 / 1.3094