The pound sterling was muted on Thursday after falling to a one-week low earlier in the week. Lack of fresh developments on the Brexit deadlock saw investors on the sidelines.
With the Queen now approving the suspension of Parliament, the prospects of a no-deal Brexit has increased. Still, many believe that a deal could be agreed closer to the deadline. Economic data today will focus on net lending and mortgage approvals data due later in the day.
GBPUSD Back to Support Area
The GBPUSD currency pair extended declines back to the support area of 1.2170. Price action is likely to retest this level more firmly in the near term. However, in the event that GBPUSD breaks down below this support, the upside bias will lose the validity. To the upside, the resistance area at 1.2511 – 1.2533 will be the next target in the medium term.
