The Cable found support just above 1.26, the lowest levels since early January, as the broad US Dollar weakness combined with some optimism regarding Brexit progress, made the bears to give up control in the short-term. Various news reports speculated that Theresa May will announce her departure today, if the rumors are correct, the GBP bulls could make a comeback and push the Sterling higher, at least in the short-term. In economic news, the UK retail sales are expected to witness a pullback, if the data miss the forecast, it could dent this recent bullish sentiment on the Pound, and could limit any temporary upside potential.
The Pound bulls are looking alive again after price found support just above 1.26, and potentially forming a higher-low around 1.2650, indicating a possible short-term reversal towards 1.27 and even 1.2750. The sellers however, need to break below 1.2650 to stop this bullish momentum and push price lower to retest 1.26.
Support: 1.2650 / 1.26
Resistance: 1.27 / 1.2750