The Pound closed with small gains on Friday as traders focused on the USD weakness amid lack of Brexit headlines. Upbeat earnings report from the US pushed investors to risk-on during Friday, while optimism surrounding the US-China trade deal remained in the focus. The market is still confused on the fate of the Sterling with no clear directional bias, as the UK parliaments are on the Easter recess until April 23. We expect a slow day on the British Pound with a low market volatility as we have no economic data coming out from neither the UK or the US.
The Pound is still stuck in a consolidation mode in the triangle wedge pattern (purple lines) with a small bullish bias that is currently forming. A short-term bullish trend line (blue) has been giving price an upward momentum since the beginning of April. As long as the Sterling remains above this trend line then the bulls will have the advantage to break to the upside of this wedge. If this short-term trend line (blue) is broken, then it will open the doors for a possible 1.30 retest.
Support: 1.3065 / 1.3020
Resistance: 1.31 / 1.3130