The British Pound surged yesterday as Brexit Party head Nigel Farage said his party won't contest any seats currently held by the Conservative Party at the general election on Dec. 12. The move increases the chances of the Conservative Party gaining a majority at the polls, and consequently implementing the EU withdrawal agreement secured last month by PM Boris Johnson. On the data front, the UK economy had narrowly missed a recession in the Q3, after printing 0.3% below expectations. Looking forward, the UK will be releasing October’s Claimant Count Change and September’s Unemployment Rate, which will give a short-term stimulus. However, the primary sentiment driver remains any relevant Brexit news.
The potential Double-Top reversal pattern is currently on hold as the bulls took control in yesterday’s session and pushed price higher; however, they faced a strong resistance pressure at the 50-day moving average. If the buyers won’t find enough momentum to break above that level, then price will likely fall back towards 1.2790, which is the lower end of this current consolidation zone.
Support: 1.2850 / 1.2790
Resistance: 1.29 / 1.30