The Pound remains unchanged as investors await any developments in regards to the Brexit negotiations. For now, latest events point towards difficulty for the EU and Britain to reach an agreement. During last week's summit in Salzburg, the EU leaders rejected the Chequers Plan which was one of Theresa May's most demanded parts of the Brexit deal. For today, sentiment will remain negative in relation to Brexit up until any positive announcement from the EU or UK negotiators. The pair will also be driven from the U.S Dollar's side as trade war escalation between the U.S and China pushes investors towards purchasing safe haven currencies such as the U.S Dollar. Economically speaking, investors need to also monitor the U.S Consumer Confidence report which will also affect the pair from the greenback's side.
The negative sentiment surrounding the Pound remains in place, thus investors will be more prone to short the pair. Additionally, the pair has failed to break above the 13 and 50-period moving averages signaling bearish momentum. A break below both the 1.30535 support level and the 200-period moving average will signal a broader shift in the general trend of the pair exposing the 1.29416 level.
Support: 1.30535 1.29416
Resistance: 1.31400 1.32000