Post-Brexit negotiations continue to cast a shadow over the pound this week
Cable is now down to session lows of 1.2957 as the pound is finding little reprieve after the drop overnight on more posturing by the EU ahead of post-Brexit talks.
Price continues to sit under the 1.3000 handle as sellers remain in near-term control and is now challenging key daily resistance around 1.2950-60 once again. This week's low of 1.2941 will be a key level to watch out for as well.
Break below these levels and that will pave the way for a further move towards 1.2920 with further support then seen around 1.2900-05. The 100-day MA (red line) is also not that far away if we do see a move lower, resting at 1.2895 currently.
It has been a choppy week of trading for the pound since the BOE meeting last week, but with Brexit risks, this brings back the kind of volatility in the currency that we saw last year.
