Pound jumped to session high at 1.2745 on the latest news that PM May will make a speech today (15:00GMT) and present the details of Brexit legislation before parliament vote in June.
May is expected to present her Brexit plan that was rejected three times, but with some significant changes.
Markets is focusing on PM May’s speech that would provide fresh direction signals, as today’s dip to new multi-month low (1.2685) was short-lived, but subsequent rally was so far limited, suggesting that the pair requires a catalyst for stronger movements.
Daily stochastic is reversing in deep oversold territory and would provide fresh bullish signal, but overall bearish structure would require stronger signal to start changing direction.
Res: 1.2761; 1.2773; 1.2798; 1.2865
Sup: 1.2685; 1.2668; 1.2629; 1.2615