The Pound closed relatively unchanged after dropping to ten-week low during yesterday’s session, as Brexit deadlock and doubts over the future position of the UK PM May continued to hurt the British Pound against the majority of its counterparts. Today, traders will be mainly waiting for the Q1 US GDP numbers to decide their next action. The Sterling could see a corrective bounce if the GDP fails to impress the market participants.
The Pound continued its free fall yesterday until it found support at 1.2866 and bounced to close just above 1.29 (S1). The bears look exhausted and price could extend its corrective gains towards 1.2930 (R1) or even 1.2960 (R2), before continuing its bearish momentum possibly taking the Sterling towards 1.2850 (S2). The bulls will remain under pressure as long as price remains trading below 1.30.
Support: 1.29 / 1.2850
Resistance: 1.2930 / 1.2960