The British Pound finds demand amid rising expectations of delayed/soft Brexit. The United Kingdom’s House of Lords is still debating on various Brexit issues to roll them out by this evening, in order to return them to House of Commons that could pass them for Royal Assent. It should also be noted, that recent resignation by Jo Johnson, a top-tier Tory member, and PM Johnson’s brother, increased the odds of a soft Brexit, which gave the Cable bulls more reasons to be optimistic. Other than today’s Brexit headlines, the NFP and Fed Powell’s speech will have a major impact on this pair. If the data beats the expectations and Powell sounds less dovish, it could limit any upside potential on the Sterling.
The Sterling bulls confirmed the breakout above the 50, 200-day moving averages and the medium-term bearish trend line, as price retested and pushed higher. The bullish momentum persisted to take also out the 1.2310 resistance. Today, the buyers will try to retest another major resistance, 1.24. If momentum fades however, price could consolidate just above 1.23 for today.
Support: 1.2310 / 1.2210
Resistance: 1.24 / 1.2450