The speech delivered by Theresa May about post-Brexit relationship with the EU on Friday, indeed affected value of the Pound.
Unfortunately, the effect was negative and the British currency just in one hour lost 79 points against the Dollar. Probably the best description of this situation was made by the German Foreign Minister who noted that the speech was vague and did not contain any concrete proposals.
Accordingly, the rectangle pattern that formed in the beginning of previous week sustained and is likely to sustain today as well. On the one hand, the rate feels pressure from the 55- and 100-hour SMAs together with the weekly PP at 1.3536 that pushes it to the top.
However, the expected target for today would be an area around 1.3585, but not the upper edge of the formation.
