The British Pound is losing momentum as bullish sentiment is starting to fade away. The Cable traders are currently struggling to form a positive sentiment around the latest events in the UK and the upcoming election campaign in December. First, PM Johnson is accusing MPs as they keep refusing to deliver Brexit. Second, the recent resignation by the Labour Deputy, Tom Watson, and a receding volume of the allegations that the Tory leader tried saving Russian hackers is also affecting negatively on the market sentiment. Finally, yesterday, John Bercow, former Speaker of the House of Commons, has described Brexit as the biggest mistake Britain has made since the Second World War. Today, traders will be looking forward to the BoE MPC Meeting Minutes and the Governor Carney’s speech later on for any hints to boost the sentiment.
The Cable bears are attempting to take control in the short-term as they broke below the 50-day moving average during yesterday’s session after hovering around for a couple of days. The 1.2790 support will likely be their next target as the bulls are starting to lose momentum. A break below this important level will open doors for much further sell-off and a possible change in market trend.
Support: 1.2850 / 1.2790
Resistance: 1.2930 / 1.3011