Cable dips lower on the session as the pound slips further alongside a wave of dollar strength
The pound is getting a serious reality check as more stops are triggered as cable breaks below the 200-hour MA (blue line) and the 1.3200 handle. Sellers are now looking to keep near-term control and this may spell more weakness for the pound moving forward.
If the pound was a buy-on-dips before this, Boris Johnson's Brexit comments today and the technical move earlier in the morning has basically has turned sentiment 180 degrees.
I reckon there could be some base for the pound as we look towards 1.30 to 1.31 but if anything else, this shows that any potential rally towards 1.38 and what not may never materialise - especially if Johnson amends his Brexit bill to confirm a no-deal Brexit by the end of next year, if there is no deal struck with the EU.
