GBP/USD falls from 1.2150 levels to a low of 1.2115 to start the session
- UK special advisor to PM Johnson says MPs cannot stop no-deal Brexit
The pair made a high of 1.2188 earlier in the day but faced resistance from the 23.6 retracement level and fell off thereafter. Of note, price has now even fallen below the 100-hour MA (red line) @ 1.2147.
As such, sellers are back in near-term control and will be looking to retest the 1.2100 handle as well as last week’s low of 1.2080.
Brexit uncertainty remains the name of the game for the pound and with Dominic Cummings saying that a no-deal Brexit is inevitable, it is spooking market participants a little as we begin the new week.
In the bigger picture though, things haven’t really changed:
Price still needs to navigate a break below the 1.2110 level – March 2017 low – as well as the trendline support since August last year, which is seen at 1.2098 this week. Unless we see sellers hold a break below those levels, buyers can still lean on those levels for some relief ahead of September.