The Pound attempted to recover during yesterday’s session but ended the day negatively as Brexit uncertainty persists. The Cable faced selling pressure as PM May could neither gain any solution from the cross-party Brexit talks nor please lawmakers with the promise to present a “new, bold offer with an improved package of measures”. Looking ahead, market sentiment will remain bearish after the BBC reported some leaked documents suggesting no major changes in the PM May’s Brexit proposal that will be up for voting in the UK Parliament during the week starting from June 03. In macroeconomic news, BoE Gov. Carney will be speaking today and presenting the Inflation Report which could be today’s main focus for traders, as there won’t be any major developments regarding the Brexit talks until June 03.
The Sterling tried to recover beyond 1.2750 but the sellers kept a lid on prices. The bulls need to find a momentum to push price towards 1.2780 to pause the selling pressure. On the other side, the bears will ideally try to break below 1.27 to confirm further weakness in price. The bias remains with the bears until proven otherwise.
Support: 1.27 / 1.2670
Resistance: 1.2780 / 1.2830