The Pound tried to recover during yesterday’s session but the market sentiment is leaning towards the bears’ side after speculations that a senior Tory member is likely to push the British PM towards a resignation before June. PM May, in her turn, is ready to restart the cross-party Brexit talks with the opposition Labour party after it stalled before the Easter break on personal differences. The Sterling’s market sentiment is in a very critical state as fear of uncertainty is the current dominant emotion in the market. Any negative Brexit development could trigger a heavy sell-off.
After breaking below the key psychological support the 1.30 round number, the Pound found some bid around 1.2980s to stay afloat. Yesterday, the Sterling tried to break above 1.30 (R1) to regain bullish momentum, but it failed to do so as price pulled back towards 1.2980 (S1). Any break below this level could take the British Pound towards the next support level 1.2960 (S2). The bulls need to break above 1.30 to ease the downside pressure.
Support: 1.2980 / 1.2960 / 1.2930
Resistance: 1.30 / 1.3030