The British Pound remains under pressure as political and Brexit uncertainty persist. The British Finance Minister Phillip Hammond claimed leaving the European Union without a deal would hit the nation hard and cost far more than what has been set aside to cope with such an outcome. On the other hand, the front runner to the PM’s race Boris Johnson said that the Tories don’t need any other party’s support for Brexit while reiterating his previous pledge to crash out of the EU on October 31. He also warned that avoiding no-deal Brexit means hectic summer of talks which adds further uncertainty in the market place and additional downside pressure on the Cable.
The Cable is currently trading just above a major psychological support, 1.25, but it’s barely hanging on. If the bears successfully break below this level, then their next target would be 1.2480 and 1.2450. Price action favors the bears as long as the Sterling remains below 1.26. The bulls will need to break at least above 1.2560, to halt this recent bearish momentum.
Support: 1.2506 / 1.2480 / 1.2450
Resistance: 1.2560 / 1.26