GBP/USD falls to a session low of 1.2425
It’s a brand new day but it’s the same old story for the pound. The quid is dragged lower in early trades in Europe as the topside bounce yesterday continues to fade further amid the fact that European lawmakers have reiterated that the Brexit withdrawal agreement will not be renegotiated whatsoever.
That throws a wrench into Boris Johnson’s plan to seek further negotiations while at the same time having talked up a big stance yesterday by saying that the current agreement is “unacceptable” and that the backstop “must be abolished”.
Right now, cable is testing support around 1.2424-30 once again, an area which has helped to limit declines earlier in the week. This will be a key spot to watch for now ahead of further support closer to 1.2400 before the 17 July low @ 1.2382 comes into play.