The Pound fell during the first half of yesterday’s session after reports suggesting that the EU is expecting the British House of Commons to support a three month Brexit extension request submitted by PM May. The second half was more positive for the Sterling, as the FOMC disappointed the US Dollar bulls after the FED signaled no rate-hikes during 2019. Today, traders will shift their focus to the UK Retail Sales and BOE’s monetary policy meeting, followed by the US initial jobless claims and Philadelphia Fed Manufacturing survey.
The Pound broke below 1.3230, previous support, and currently it’s been retested for a possible new resistance. If the bears are able to protect this level, then we could see price retesting yesterday’s lows 1.3150 (S1). A break below this level, the Sterling will likely weaken further towards 1.31 (S2). The bulls need to break back above 1.3230 (R1) to shift the momentum back to their side.
Support: 1.3150 / 1.31
Resistance: 1.3230 / 1.33