The British Pound faced a selling pressure during yesterday’s session after PM Boris Johnson conceded for the first time that he will not meet his "do or die" pledge to take Britain out of the EU before Oct. 31 and called for a general election on Dec. 12 to break Britain's Brexit impasse. The opposition, however, has rejected the election offer with Labour leader Jeremy Corbyn stating that he would wait to see what the EU decides on a Brexit delay before deciding which way to vote on Monday. Overall, Brexit is currently in limbo therefore traders are unlikely to be bullish on the Sterling in today’s session.
The Sterling bears were able to retest 1.28 after temporarily breaking below the 50-day moving average, as price is currently trading in a Bullish Flag Pattern. The 1.29 level should act as a strong resistance if the bears want to stay in control, eyeing 1.2715 as their next potential target. The bulls on the other hand, need to break above 1.29 and the Flag formation to resume their dominance.
Support: 1.28 / 1.2715
Resistance: 1.29 / 1.30