The British Pound spent yesterday consolidating as lack of any new pessimistic headline faded the fears of no-deal Brexit. The UK PM Boris Johnson’s no-deal Brexit preparations angered the Labour party leader vowing to call a no-confidence motion once the Parliament re-opens in September. The EU lawmakers are also not positive for the Brexit deal discussion with the UK, considering PM Johnson’s tough stand against the previously discussed deal with the ex-PM May. Given the summer recess in the British Parliament, traders may shift their attention towards any macro news for fresh directions.
Bearish momentum starts fading away as the bulls are now looking to retest the 50-day moving average and the 1.2250 resistance. But first they need to find the necessary momentum and break above 1.22. The bears, however, need to break below 1.2080 to confirm further weakness in the Sterling.
Support: 1.2140 / 1.2080
Resistance: 1.22 / 1.2250