The Pound loses its Thursday gains and pulls back towards 1.2860 as the UK Parliament continue to be divided on important topics within the proposed Brexit deal. Investors sold off the Pound mainly due to a single unresolved topic, which is the Irish Backstop. For today, investors will need to focus on Theresa May's announcement of her Plan B for the Brexit deal. Many analysts expect May to propose an alteration of the Irish Backstop part of the Brexit deal.
The Pound breaks below the 13-period moving average signaling a possible shift in the momentum of the pair. For now, traders need to monitor how prices behave around the 50-period moving average since a break below this level will pave the way for a drop towards the next significant support level at 1.2790 which also coincides with the 200-period moving average. On the other hand, a rise back towards the 1.3004 resistance level is expected if the pair rejects to break below the 50-period moving average (yellow) and succeeds to break above the 13-period moving average (blue)
Support: 1.2849/ 1.2790
Resistance: 1.2915 / 1.3004