GBP/USD: weighed by political jitters, October low of 1.3026 at sight
|GBP/USD Current price: 1.3090
- UK PM May's leadership dented by Brexit.
- Scarce macroeconomic calendar keeping majors range bound.
The Pound is the worst performer this Monday, gapping lower against the green at the weekly opening and extending its decline afterward, as UK PM May's leadership was questioned by the Conservative Party during the weekend to the point that they could soon replace her. The GBP/USD pair plunged to 1.3061, is lowest in a week, with the latest pullback contained around 1.3100. The macroeconomic calendar has nothing of interest to offer this Monday, although the week will have plenty of fundamental releases on major economies. As for the UK, attention will also be centered on Brexit talks.
Despite dollar's broad-based weakness, the pair remains is unable to recover ground, consolidating around 1.3080/90 ahead of the US opening. Technically, the short-picture shows that the bearish momentum eased, but also that the risk remains towards the downside, as in the 4 hours chart, the price is well below a bearish 20 SMA, and below the 23.6% retracement of the latest daily decline. The Momentum indicator is aiming marginally higher below its 100 level, but the RSI maintains its slope downward around 41, favoring a new leg lower, particularly on a break below 1.3060, ahead of the 1.3026 level, October monthly low.
Support levels: 1.3060 1.3025 1.2980
Resistance levels: 1.3145 1.3180 1.3220
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