The selling pressure around the Cable intensified in early European thin trading conditions, knocking-off the rates below the key 1.2000 level, the weakest levels since January 2017 at 1.1995. At the press time, the spot managed to jump back above the 1.20 handle, awaiting fresh Brexit clarity.
The ongoing Brexit chaos ahead of the Parliamentary vote on the no-deal Brexit bill and amid a probable election as early as October 14th continues to keep the GBP bears alive and sound.
FX Street’s Senior Analyst, Yohay Elam, notes: “The opposition will table an emergency motion to kick off a process of rapid legislation meant to force the government not to leave without a deal. If it passes, the government will have to ask for a 3-month extension to January 31. The "rebel alliance" seems to have enough support. Prime minister Boris Johnson reiterated that he will not ask for an extension of Brexit beyond October 31, hinting that he will be forced to call for an election – probably for October 14.”
GBP/USD Technical levels
“In case prices keep falling past-1.1987, late-2016 bottom surrounding 1.1800 will flash on daily chart. Alternatively, 1.2100 offers immediate resistance to the pair ahead of pushing it to confront support-turned-resistance around 1.2150. During the pair’s additional rise past-1.2150, 10-day simple moving average (DMA) near 1.2180 and a four-month-old falling trend-line, at 1.2250, will be in the spotlight,” Anil Panchal, FXStreet’s Analyst explains.
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