The Pound stays relatively unchanged despite multiple negative political headlines. The PM Boris Johnson’s reveal of his Brexit secret to the EU went largely unnoticed, which the proposal indicated multiple checks to be the solution to the Irish backstop, but the proposal was quickly turned down by Ireland’s deputy PM Simon Convey. Additionally, increasing the downside pressure was the report suggesting the British Supreme Court’s readiness to hear any plea against the Tory Leader Johnson if he refrains from obeying the Benn Bill that pushes him towards requesting Brexit extension. Furthermore, an issue concerning the PM Johnson’s inappropriate action with a press reporter before a decade exerted additional pressure on the UK leader while he is already undergoing charges of conflicting interests when being the London Mayor. The sentiment is heavily bearish, and the Cable is threading on a thin ice since yesterday, thus today’s Manufacturing PMI will be the trigger that could push the pair lower, if the data disappoints.
The Cable is trading over and under the 200-day moving average with a heavily bearish market sentiment, if the sellers found momentum and push price below it, then the next line of support is at 1.2210. However, if the bulls want to regain control, first they need to hold above the 200-day moving average, and second to break above 1.2345.
Support: 1.2272 / 1.2210
Resistance: 1.2345 / 1.2380