No reprieve for the pound after the breakout of the wedge pattern earlier
The pound is suffering heavy losses on the session now as sellers keep up the momentum after finding a break in cable to the downside. The breakout came earlier after the wedge pattern broke and it’s been a dream trade from a technical perspective thus far.
Price now aims towards the 15 November low @ 1.2724 next before further support is only seen from the 30 October low @ 1.2696.
With sellers successfully leaning on key near-term resistance levels and maintaining the near-term bearish bias (defending the key hourly moving averages), price now looks to track lower towards the year’s low @ 1.2662.
Given that there still isn’t any good news popping up just yet for Theresa May ahead of next month’s meaningful vote in parliament, the potential uncertainties are making it tough to find reason to bid up the pound currently.