The Pound traded below 1.26 during yesterday’s session as political hardships at the UK is deepening. However, the Dollar retreated from its highs after the unimpressive US GDP number and the abysmal Pending Home Sales data. The Cable took advantage of the greenback’s weakness to rebound and close above 1.26. While PM May has already announced her departure on June 07, her Brexit proposal will be discussed in the UK’s Parliament during next week and dominate British headlines. Today, UK’s macroeconomics calendar is relatively light so the attention will be shifted to any Brexit headline for a possible catalyst.
The Cable bears attempted to break below 1.26 during yesterday’s session but the bulls were waiting for them on the other side to take price back above that level. The Sterling is currently trading just above this key 1.26 support, as the buyers are trying to gain momentum to push price higher towards 1.2650. The overall sentiment remains bearish however, so the bears won’t give up easily as they will stay a threat to the 1.26 level.
Support: 1.2604 / 1.2550
Resistance: 1.2650 / 1.27