The Pound drops further as investors see no significant positive Brexit development before the EU summit. Both the UK and the EU seem to remain firm to their opinions on how the Irish border should be dealt with following Brexit, meaning that a “no deal” Brexit is the most likely scenario for now. Additionally, the Pound faces pressure from the greenback as the FOMC meeting minutes showed that the Fed intends to continue hiking rates and drive the Fed Funds rate above 3%. In addition to any Brexit developments coming out of the EU summit, investors need to keep an eye on the UK Retail Sales figures as economic data continues to play a part in the Pound’s intra-day movements.
The British Pound breaks below both the 13-period moving average and the 50-period moving average signaling a shift in the short term bias of the pair. Currently, prices are trading right above the 200-period moving average, and a drop below this level will allow for further losses and a fall towards the next significant support level at 1.3052.
Support: 1.3080 1.3052
Resistance: 1.3203 1.3255