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Cable looks towards 1.2300 as pound extends decline

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GBP/USD hits a session low of 1.2311


The pair continues to make fresh 28-month lows and now looks towards the 1.2300 handle as sellers look to reaffirm a drop below daily support around 1.2351 earlier.
There are some bids lined up around the figure level but at this rate, it’s more of a case that one shouldn’t be trying to catch a falling knife in my view.
There’s little (or almost none) reason for traders to fight the tide and as long as Boris Johnson and his government continues to talk up a no-deal Brexit stance and the European Union refusing to budge, it’s hard to see any positives during the summer recess.
As mentioned earlier, if Johnson sticks true to his plan, then that means the next angle he will try to work is to stop parliament from passing a law to block a no-deal Brexit. But we’ll likely only see that get put into motion in September.
For now, the pound’s woes look set to continue with further support on the daily chart only seen from the March 2017 low @ 1.2110 before the 1.2000 handle comes into play.

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