The GBP/USD pair closed above 1.31 yesterday, after rumors suggesting that Brexit could be delayed until 2021. UK lawmakers were discussing a 3-month extension, although EU leaders preferred a longer period. The pair retreated on a stronger dollar, bouncing back after a news agency reported that if PM May doesn't get a deal by March 13, lawmakers will force an extension. Although the Pound has been getting some bullish momentum recently, it isn't completely out of the woods yet, as traders are still uncertain about UK’s future. Today, the focus will be on PM May's speech in regards to Brexit negotiations.
The Pound broke above 1.31 resistance in yesterday’s session, and tested 1.3150 (R1). 1.31 should act as a new support now to confirm the breakout. If the Sterling breaks above 1.3150, we could possibly see a 1.32 retest. Also, the 50 and 200-day moving averages are crossing, which adds to the current bullish narrative around the Pound. Only a break below 1.31 (S1) could slow down this recent bullish momentum.
Support:1.31 / 1.30
Resistance:1.3150 / 1.32