GBP/USD falls to a session low of 1.2195
The pound is losing some further ground in the European morning with cable now threatening to slip back under the 1.2200 handle. Price has fallen to a session low of 1.2195.
As mentioned earlier, topside resistance remains at the 50.0 retracement level @ 1.2267 and that remains the risk for sellers. Meanwhile, the risk for buyers is if price holds a break back below the 1.2200 handle.
If we do see such a move, it will open up a test towards the 100-hour MA @ 1.2155 as well as potentially the 200-hour MA @ 1.2124.
There isn’t much driving the move lower here but as highlighted in the earlier post as well, Merkel’s comments isn’t exactly a major game-changer to the Brexit equation – not when it isn’t back by concrete solutions to the Irish border still.