The Cable remained weak on Friday as odds of no-deal Brexit increased. UK PM Johnson signals preparedness to disobey Benn Bill, which pushes him to extend Brexit beyond October 31. Additionally, three key British personalities like Michael Gove, Jacob Rees-Mogg and Steve Barclay exerted downside pressure on the Sterling after they reiterated the PM’s message of Brexit at the start of the Conservative annual conference that will last until October 2. Elsewhere, Mr. Johnson is under pressure amid allegation of mishandling public funds while being the London Mayor. Additionally, the opponents of Brexit, popularly known as remainers, are under process to form a cross-party alliance to push the PM towards following the Benn Bill in all cases. Uncertainty remains high in the UK and any disappointment in today’s GDP numbers will likely push the British Pound below the 200-day moving average.
The Cable found support at the 200-day moving average but price action remains weak and favors the bears to break below that important level. A break below 1.2290 will likely extend the losses towards 1.2240. However, if the bulls gather momentum and protect this support level, a bounce towards 1.2345 will be a likely scenario in the short-term.
Support: 1.2290 / 1.2240
Resistance: 1.2345 / 1.2380