The Pound gained yesterday during the London session after some positive Brexit developments. But the Sterling trimmed its gains after the FOMC rate decision, which triggered broad US Dollar rally. The Times reported that PM May is ready to abide by the EU custom norms after Brexit. With this, cross-party talks are likely to move forward, which could also offer easy transition of PM May’s proposal through the parliament. Today, the UK will be releasing Construction PMI numbers, but traders will mainly be focusing on the BoE Interest Rate decision as well as Governor Carney’s speech regarding the economy and the monetary policy.
The Pound attempted to break above the 200-day moving average but the bears showed up and took the Sterling lower. Market sentiment is still bullish and traders will most likely re-try to break above 1.3085 (R1). A successful break will take price higher towards the next possible resistance level, 1.3115 (R2). The bears need to break below 1.30 to regain control.
Support: 1.3050 / 1.3010
Resistance: 1.3085 / 1.3115