GBP/USD is down to 1.2945 as the pound continues to stay pressured, following renewed focus on post-Brexit trade worries yesterday
- Barnier: We don't want UK divergence from EU rules to result in unfair competition
- UK PM Johnson: We will not engage in cutthroat race to the bottom on trade
- Barnier, Johnson's diverging messages on EU-UK trade not helping the pound
The pound is failing to keep afloat this week as cable continues to stay pressured after failing to keep above the 1.3200 level in its post-BOE rally.
You can argue about it from a technical perspective and even from a fundamental one i.e. renewed worries on post-Brexit trade, but the pound is just not able to catch a breath as we get things going this week.
The fall below the 14 January low of 1.2955 now brings into focus support at 1.2920 as well as the 23 December low at 1.2905. That as well as the 1.2900 level will be a key focus area in the event of a further downside move.
Beyond that, the 100-day MA (red line) will offer buyers another line of defense at 1.2885.
