The British pound broke below 1.29 yesterday amid headlines surrounding the cross-party Brexit talks. A spokesman for the Labour party told reporters that there are some gaps between the Labour party and the government, as they cannot support the Brexit legislation without an agreement. Time is running out and uncertainty remains the key sentiment driver, as the Brexit vote is expected to take place in the first week of June, markets don’t seem to be convinced that a positive outcome is likely in the near-term. With UK’s lackluster macroeconomic calendar today, traders now look forward to PM May’s meeting with the Tories, hoping for a positive development.
The Pound broke below key support levels during yesterday’s session as the bears take complete control. The bulls will attempt to break above 1.2850 (R1), however if they fail to do so, then the bears will likely retest the recent lows 1.2820s and probably break below it and push price towards 1.2780 (S1).
Support: 1.2828 / 1.2780
Resistance: 1.2850 / 1.2880 / 1.2915