The Pound fell below 1.30 yesterday despite the big beat on the UK retail sales. The strong US Dollar pressured the Sterling to head lower by turning the market sentiment bearish. Traders are now eyeing the 1.29 support for a potential retest. The bulls will be hoping for some good Brexit news to push the Sterling higher, after the British Parliaments come back from the recess on April 23rd. Until then, the bears will stay in control. We expect a slow day today, as most major markets including the British Market, are closed for Good Friday.
The Pound broke below the triangle wedge pattern (purple lines) and the 1.30 psychological round number yesterday, signaling a major bearish reversal might be on the way. Ideally, 1.30 previous support should act as new resistance, but price could retrace back to 1.3020-30 before rolling over.
Support: 1.2980 / 1.2960
Resistance: 1.30 / 1.3030