The British Pound remained subdued after Friday’s report that the European parliament president has rejected the UK Boris Johnson’s new Brexit proposal. However, a combination of diverging factors failed to provide any meaningful bias in the marketplace. The US Unemployment rate dropped to 3.5%, lowest in over 50 years, but the weak tone surrounding the US Dollar remains a strong factor, as the market is expecting a Fed rate cut in the upcoming monetary policy meeting on October 29-30 in order to support the economy. Today, traders will be focusing the most on the Fed Chair Powell giving a speech, as he might drop a clue on the upcoming potential rate cut and provide a meaningful bias in the market.
The Cable broke below the 1.2340 support on Friday, and currently trading over and under both moving averages, with no apparent bias. The bulls need to gather momentum and break back above 1.2340 to regain a bit of possession, in an attempt to retest the 1.2412 high. The bears need to break below 1.2272 to fully dominate the market sentiment once again.
Support: 1.2272 / 1.2250
Resistance: 1.2340 / 1.2412