The Pound bulls continued showing some resiliency around the 1.2200 round-figure mark after some renewed US Dollar weakness helped limit any further losses. However, it remains to be seen if the pair is able to capitalize on the momentum or the uptick is still seen as an opportunity to short amid increasing odds of the UK's exit from the EU without a deal. Apart from any Brexit-related headlines, today’s UK macroeconomic data such as; GDP and Manufacturing and Industrial Production, might further influence the market sentiment surrounding the Sterling and provide some short-term trading insights. Recent weakness in UK PMI data has revived recessionary fears in the UK and thus, any positive surprise might be enough to trigger some near-term short-covering move.
The Cable bounced from 1.22 towards the 50-day moving average, 1.2290, but the bulls could not hold on to the gains, as price pulled back once again to the 1.22 support level. Today, the bulls are attempting to replicate yesterday’s bounce, hoping this time they make it through. The bears on the other hand, will attempt to put pressure on the buyers aiming to break below 1.22.
Support: 1.22 / 1.2150
Resistance: 1.2270 / 1.23