The British Pound fell during yesterday’s session as renewed Brexit-pessimism continued to weigh down on the Cable. Given that the EU’s officials see the UK PM Boris Johnson's new Brexit plan as insufficient, uncertainties surrounding Britain's exit from the European Union acted as one of the key factors applying some pressure on the British Pound. A modest pickup in the US Dollar demand, supported by a rebound in the US Treasury bond yields and positive trade-related headlines, further collaborated to the pair's overnight downtick. Today the focus will remain on possible Brexit headlines, as they continue to be the main driver of the sentiment of this current market.
The Cable witnessed some intraday bounce yesterday, but lacked any strong follow-through and fell below the 50 and the 200-day moving averages. The bears are approaching the next line of support, 1.2272; any break below that level will push the pair towards 1.2225. On the other hand, the bulls will need to break above 1.2340 to regain control and attempt to retest the recent highs 1.2412.
Support: 1.2272 / 1.2250
Resistance: 1.2340 / 1.2412