The sentiment weighed on the British Pound yesterday after PM Johnson failed to please the EU leaders that France accused him of seeking individual deals rather than a deal for the whole zone. Domestically, the opposition Labour party prepares for another election, knowing that the PM will again put the motion forward as soon as the Parliament resumes working on October 14. However, some among the party leaders are struggling to define the motto between another referendum seeking to remain in the EU or to promote seeking a deal with the EU before winning the election and then go for the referendum. Elsewhere, the Yellowhammer document consisting nearly 20 expected outcomes, which was already leaked last month, confirmed that the medical, food shortage could take place in a case of no-deal Brexit, which brought back fear into the marketplace. Today, giving the lack of macroeconomic data coming out from the UK, the main market driver will remain any possible Brexit development.
The Sterling bulls are starting to lose momentum as 1.2385 has acted as a strong resistance so far. The Cable will likely extend its losses if price breaks below the 1.23 support. If not, then lack of strong conviction to either side, will probably keep the Sterling consolidating between 1.23 and 1.2385 for now.
Support: 1.23 / 1.2250
Resistance: 1.2335 / 1.2385