The British Pound remained under pressure after Chancellor’s failure to justify criticism of the opposition Labour party’s spending plans raise doubts over the PM Johnson’s lead in December polls. Also adding to the ruling party’s tension is Scottish National Party’s go ahead with the general election campaign. Given the absence of the US traders, due to Veterans Day Holiday, markets will look for the British data for fresh impulse. Among them, preliminary reading of the Q3 GDP, coupled with Manufacturing and Industrial Production numbers for September, will be the key for a potential boost in prices. However, any push to the upside will likely be short-term and face more sellers than buyers, as the overall market sentiment remains bearish.
The potential Double-Top reversal pattern is still not confirmed, as the bears need a clean break below 1.2790 to validate it. Meanwhile, the bulls will be looking to boost prices higher towards 1.2850 in an attempt to take back control. However, the bulls need to find further momentum and push prices even higher, ideally above the 50-day moving average to invalidate this bearish pattern and take back control.
Support: 1.2790 / 1.27
Resistance: 1.2850 / 1.2930