The Pound rose during Friday’s session after news that the EU is ready to extend the Brexit deadline off from March 29, coupled with reports claiming that Chancellor Hammond and other cabinet colleagues supported PM May which added positivity in the market sentiment. PM May will put forward her Brexit proposal in the UK parliament for the third time on Tuesday in order to gain support and benefit from a deadline extension till May 22. Market participants will mainly be focusing on that event for the next possible catalyst on this pair. Today it will be a quiet day in the UK and the US in terms of macroeconomic releases.
The Pound recovered on Friday until the buyers found some resistance around the 50-day moving average (blue line), and started pulling back below 1.32 (R1). A successful break above 1.32 (R1) will open doors for further recovery towards 1.3250 (R2). On the other hand, a break below 1.3150 will dent this current bullish momentum and could possibly take price towards 1.31 (S2) and the 200-day moving average (yellow line).
Support:1.3050 / 1.31 / 1.3150
Resistance:1.32 / 1.3250 / 1.33