The Pound rises slightly higher after being supported by a drop in the US Dollar. The US Dollar's weakness helped the British currency push higher as investors expect the Fed to alter their hawkish stance in regards to interest rates. In regards to Brexit, no significant development occurred yet and the Pound’s price action is mainly being affected by the US Dollar. For today, traders need to set their eye on Fed Powell’s FOMC speech in which he is expected to provide guidance over Fed’s rate hike plan for 2019.
The Pound trades just below the 1.2685 resistance level after the initial failure to break above this mark. For now, short-term momentum remains bullish given that prices are trading above the 13 and 50-period moving average. Whereas, long term momentum remains bearish as prices trade below the 200-period moving average. If the Fed delivers a dovish statement today, then the break above the 1.2685 resistance will be confirmed, paving the way for a rise towards the next resistance level at 1.2568.
Support: 1.2638 / 1.2568
Resistance: 1.2685 / 1.2745