The Pound trades lower as the greenback retreats after the market begins to disregard Trump's comments related to the Fed's rate hike policy. The Sterling is also dropping as investors feel uncertain with the Brexit plan given that during the weekend, the Conservative party suggested a second referendum.
The Pound is expected to be mainly driven by Brexit politics and investors need to remain on the look out for any developments related to this matter. Today specifically, the pair will also be driven by the U.S PMI figures. Better than expected Manufacturing PMI and Services PMI figures will pave the way for a break below the next support level at 1.30300.
The Sterling reached the 0.618 Fibonacci retracement and dropped signaling a downward continuation. Furthermore, the pair failed to remain above the 50-period moving average signaling weakness from the buyers' front. Expectations point for a drop towards the next support level at 1.30507 and a break of this support level will pave the way for a drop towards the monthly low of 1.29571.
Support: 1.30507 1.29571
Resistance: 1.31600 1.32082