The Pound remained unchanged yesterday following the mixed readings of British employment details. PM Johnson, on the other hand, promised to end this Brexit situation, as the UK cannot afford to waste more time deciding whether and how to leave the EU. The PM also said that moving on from Brexit will enable the country to “unleash its potential” by delivering a big economic boost and enable the UK to focus on creating jobs of the future and tackling climate change. Prices now await October month CPI data from the UK ahead of watching over the US CPI for the same month as well the Fed Chair Powell’s testimony. While the US inflation numbers are less likely to deviate, the Fed Chair will be closely observed to confirm his recent decision to pause rate cuts.
The potential Double-Top reversal pattern remains on hold as the bulls attempt to take out the 50-day moving average to take back control. However, the buyers are not being able for now to find the required momentum to break above that level. A break above the 50-day moving average will most likely push price beyond 1.29. In contrast, a break below 1.2816 will likely pull price back to 1.2771. which is the lower end of this current consolidation zone.
Support: 1.2816 / 1.2771
Resistance: 1.29 / 1.2975