The Sterling remained pressured by Brexit uncertainty but managed to close positively on Friday. There was no progress on cross-party talks, and in fact, they are close to collapse, as PM May is not backing down from her terms. The UK macroeconomic calendar is quite scarce this upcoming week, as Thursday’s BOE monetary policy decision is the only major event. Traders expect no change in rates as policymakers have previously hinted that they would already be raising rates if it weren’t for the Brexit chaos.
The Pound managed to close positively on Friday after dropping towards 1.2875, where price found support and bounced above 1.29. Sentiment remains bearish, so we wouldn’t be surprised to see if the sell-off resumes today. However, a break above 1.2930 (R1) could lift the Sterling higher towards 1.2960 (R2).
Support: 1.29 / 1.2880 / 1.2850
Resistance: 1.2930 / 1.2960