The British Pound fails to break below the 1.28027 support level following weakness from the U.S Dollar. The greenback lost ground on Friday following Fed Powell's cautious remark regarding the future of U.S interest rates. Powell informed Jackson Hill attendees and the general public that him and and his panel do not believe that the U.S economy is overheating which means that the Federal Reserve does not need to take an aggressive stance in raising interest rates. On the surface, the British Pound is also facing downward pressure due to the uncertainty regarding Brexit. As the days go by, chances of a “no-deal” Brexit increase reaching a point were politicians, economists, and analysts discussing not only the probability of its occurrence but also debating the outcomes and risks associated with it. For now, the pair will trade within the 1.28027 support level and 1.28812 resistance level. Negative developments related to Brexit will push the pair lower and bearish interest rate remarks from U.S officials will push the pair higher.
The pair is stuck between the 1.28027 support level and the 1.28812 resistance level. Depending on any political or economic development from the U.S or the U.K, the pair will either break above the resistance level exposing the 1.29289 level or break below the support level exposing the 1.26949 level.
Support: 1.28027 1.26949
Resistance: 1.28812 1.29289