The Cable sank yesterday as Brexit reality started to sink in. The election is over as Johnson is a Guaranteed Winner based on votes already cast. Boris Johnson’s Brexit plan received a massive boost after it was revealed 10 Labour MPs would be willing to back a no deal exit from the EU in order ensure the UK leaves. Johnson also pledged to remove the Irish backstop after criticizing it at the fundraising event in London. Today, additionally to the Brexit drama, traders will have the UK CPI and PPI numbers to focus on.
The Sterling bears are in complete control as they broke below key support level yesterday, 1.2440. The bulls found temporary support at 1.24, but if the bearish momentum persists, we could see more lows during today’s session, taking price lower towards 1.2365 and 1.2330. The only way to stop this recent bearish momentum is when the bulls break above 1.2440.
Support: 1.24 / 1.2365 / 1.2330
Resistance: 1.2440 / 1.25