The Pound falls back towards the 1.2600 mark as Prime Minister Theresa May failed to make any positive Brexit deal developments during the EU summit. May hoped that during the EU summit she would have been able to renegotiate the Brexit Withdrawal Agreement with the EU leaders. May intended to persuade EU leaders to include a clause within the deal that would offer the UK a guarantee that the country will not be locked in the EU’s customs union forever. Such clause is crucial for May, as it is believed that the inclusion of such clause will pave the way for UK MPs to agree on the Brexit deal.
The Pound rejects the 13-period moving average confirming the bearish momentum facing the pair. Since bearish momentum is confirmed, the pair is expected to continue falling towards the next key support level at 1.2485. If prices moved back up above the 13-period moving average then a rise towards the 50-period moving average at 1.2640 is expected.
Support: 1.2485 / 1.2425
Resistance: 1.2607 / 1.2640