The Pound closed the week with a big drop as uncertainty around Brexit remains very high. PM May might face another possible defeat in the British parliament voting with her same Brexit proposal, as it will soon be up for voting. The Cable gapped up on Monday morning after the BBC reported that PM May is likely to ask Tory colleagues to compromise with her demands in order to lure members of the UK parliament vote for her Brexit proposal. However, the bias remains negative as market participants are still very bearish in the big picture. Today’s lack of macroeconomic data leaves Brexit and political chatter in focus.
The Pound closed negatively for the fifth consecutive day on Friday as price tumbled down after it broke below a key support level 1.2780. The bulls found support just above another major support level 1.27 but price action remains weak and the bias persists to the bears side. The buyers need to find momentum and break above 1.2780 to pause this current sell-off in Sterling.
Support: 1.27 / 1.2666
Resistance: 1.2780 / 1.2850