The Pound fell yesterday to levels not seen since January, as political pressure heats up ahead of Tory voting where 6 candidates will be voted for the UK PM’s post. The probability for a hard Brexit increased yesterday after the British Finance Minister Philip Hammond showed readiness to resign. Doubts over who will replace the present PM Theresa May and renewed pessimism surrounding the UK economy kept market participants in a bearish mood. Traders may now emphasize on the outcome of conservative voting, also keeping an eye on BOE Governor Mark Carney’s speech at the ECB Forum in Sintra which could give the market a fresh impulse.
The Sterling continued to break to the downside, as the bears are back in complete control. Price could bounce towards 1.2560 before continuing its downward march to 1.25 or even lower. The bulls need to break back above 1.2560 to halt this recent bearish momentum, at least in the short-term.
Support: 1.2530 / 1.25 / 1.2480
Resistance: 1.2560 / 1.26