Technical Analysis

Cable looks poised to retest key daily support as pound slips a little

GBP/USD falls to a low of 1.2486 on the day


Price is now inching back towards a test of key daily support around 1.2480 as the pound holds weaker to start the European morning. There aren’t any fresh headlines driving the move lower in the quid today but the culmination of negative sentiment is no doubt something that weighs on the mindset of traders/investors.

If price starts slipping further from here, be on the look out for a test of the support from the January low @ 1.2441. If that gives way, it could open up further weakness in cable so long as headwinds continue to remain for the pound on the Brexit front.

The UK economy has already felt the pinch of what Brexit uncertainty has to offer in Q2 this year and if we’re headed towards a no-deal outcome, it puts the pound in a precarious position to fall further from here given the fear and hysteria that may ensue.

Brexit UK

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