The Pound fell around 100 pips on Friday as Boris Johnson, a Brexit hardliner, was considered the strongest contestant after gaining 114 votes during the latest round of poll and also getting the supports of influential British lawmakers. With the looming Brexit uncertainty and the Dollar bulls back in momentum, the Sterling could face a critical downside scenario in the near future. Given the lack of macroeconomic data today, political plays ahead of Tuesday’s another round of voting to select Tory leader will gain major market attention for fresh impulse.
The Sterling ended the short-term counter move by dropping around 100 pips on Friday, breaking below significant support levels along the way. The bears are looking to retest the recent low 1.2560. If they successfully break below it, then a further downside towards 1.2530 will likely be confirmed. The bulls on the other hand, need to break back above 1.2615 to stop this recent bearish dominance.
Support: 1.2560 / 1.2530
Resistance: 1.2615 / 1.2660