GBP/USD falls to its lowest level since 25 August
The pound is eyeing another potential 100 pip drop in trading today, as cable sinks to a fresh low of 1.3073 amid more Brexit pessimism making the headlines.
The latest being the head of the UK government legal department quitting over Boris Johnson’s plans to row back the Brexit withdrawal agreement and that is sending the pound to fresh lows as the specter of a no-deal Brexit intensifies.
Cable already broke some key near-term resistance at 1.3200 yesterday and taking out the 1.3100 handle is another tick in the box for sellers.
Right now, there is some support from the daily chart from a trendline as seen above around 1.3078 so watch that level ahead of the close today.
If that gives way, the 1.3000 handle is the next key psychological level to watch and should that fall as well, things could get real dicey for the pound this week – more than it already has been over the past two days.