The Pound strengthens further as a Brexit deal is reached between Prime Minister Theresa May and the EU. Yesterday, Theresa May was able to reach an agreement with the EU in regards to how the UK will exit the EU bloc, and how the relationship between the UK and the EU will look in the future. However, many will notice that the rise in the Pound was not as significant as many would have expected, and this is mainly attributed to investors’ hesitance with the success of the deal given that the UK parliament may oppose the agreement. For today, attention will remain on developments related to Brexit and traders will most likely not pay much attention to the UK Retail Sales figures, the same way they did not pay attention to the release of the UK unemployment rate, UK’s wage growth, and UK’s CPI earlier during the week.
The Pound remains to trade around the three major moving averages as an indication of indecision in the market given that investors are awaiting the reaction of UK officials in regards to the proposed Brexit deal. Positive Brexit developments will lead to a break above the 1.3047 resistance exposing the 1.3155 level, while negative Brexit developments will lead to a break below the 1.2937 support exposing the 1.2806 level.
Support: 1.2937 / 1.2806
Resistance: 1.3047 / 1.3155