The pound fell for the third consecutive day against the US dollar, affected by the release of the first draft of the Brexit agreement and at the same time the recent recovery of the US dollar, especially following the first appearance of US Federal Reserve Chairman Jerome Powell during his testimony before Congress, as he affirmed on his confidence in the economy and continuing tightening monetary policy gradually.
The pound fall significantly after exchanging accusations between British side and EU side, as Michel Barnier, the European negotiator has accused the British government of delusion as time passes for an Brexit deal. The British side accuses Brussels of abandoning Innovative solutions.
Sterling has risen almost 3% against the US dollar since the beginning of this year and currently the GBPUSD is testing an important support level at 1.3836 (resistance turned into support).
The dollar index rose today to test an important resistance level, the neckline of a double bottom pattern on the daily chart, exceeding that level may push the dollar to visit its highest level since the beginning of the year at the levels of 92.50.
On the other hand, the Euro was not affected much during today's trading, following preliminary reading of Eurozone inflation, which came in line with expectations and slightly slowed to 1.2% in February, currently EURUSD traded near the 1.22 level.
