The British Pound edged lower for a third consecutive day due to lack of progress in cross-party Brexit talks, falling to a fresh 2-week low of 1.2906. MPs will be asked to vote on Brexit again in early June whether or not the government and Labour have reached a deal. Analysts suggest that the cross-party talks are very close to collapse if they don’t find a solution by June 3. Furthermore, the latest mixed employment data added even more pressure on the Cable, further denting the market sentiment. There is no data scheduled for release in the UK today. Any possible Brexit development will be the main market driver.
The Pound broke below a couple of support levels yesterday until price found some buyers at 1.29. Price action looks very weak and bearish, as the bulls didn’t even have a proper bounce from that level. Failure of regaining the 1.2915 level, the bears will find momentum again and target the Sterling lower towards 1.2850, as they are in complete control.
Support: 1.2880 / 1.2850 / 1.2780
Resistance: 1.2915 / 1.2945 / 1,2970