The British Pound remained weak during yesterday’s session as the UK PM Boris Johnson witnessed another defeat in the House of Commons while applying for a short recess to emphasize on the Conservative Party’s annual conference starting from Sunday. Meanwhile, ex-Tory PM John Major criticized the PM Johnson and indicated that he might use Private Council to overcome Brexit extension laws. Furthermore, the House Leader Jacob Rees-Mogg has given an open offer to all opponents to a motion to call for a no-confidence vote in the government and trigger the snap election. Traders will now look forward to the meeting between the Brexit Secretary Steve Barclay and EU chief Brexit negotiator Michel Barnier in Brussels. However, the EU leaders are not in the best mood; neither do they expect any breakthrough from today’s talks considering the PM’s struggle at the British Parliament.
The Cable bulls lost momentum after price broke below the September rising uptrend as the bears are now back in control, looking to extend the drop further towards the 200-day moving average and the 1.2250 support level. The buyers attempted to reclaim above 1.2345 yesterday but failed to do so as price action remains weak and is on the verge of dropping further to the downside. However, if the bulls took out 1.2345 then 1.2380 will be their next level of resistance.
Support: 1.2290 / 1.2250
Resistance: 1.2345 / 1.2380