GBP/USD plummets to lows near 1.3240 as B.Johnson resigns

Cable tumbles to lows at 1.3240 after Johnson quits.
Sterling suffers after D.Davis,B.Johnson resign.
All attention now shifted to PM T.May, Brexit progress.

Pablo Piovano FXStreet

The British Pound is now trading into the negative territory at the beginning of the week, forcing GBP/USD to drop to fresh lows in the 1.3260 region.

GBP/USD gains halted around 1.3360

Cable is losing around a cent since earlier tops in the 1.3360 zone after a wave of selling orders hit GBP following Foreign Secretary Boris Johnson resignation on Monday. Johson’s resignation follows Brexit Secretary David Davis’ and cast a mantle of doubt over the Brexit negotiation and PM T.May’s government.

Cable’s recent upside momentum has been sustained by the persistent weakness around the greenback, specially emphasized following Friday’s mixed results from the US Non-farm payrolls.

Later in the week, UK’s Industrial/Manufacturing Production is next on tap (Tuesday) seconded by speeches by Governor Carney’s (Wednesday) and Cunliffe (Friday).

GBP/USD levels to consider

As of writing, the pair is retreating 0.24% at 1.3255 and a break below 1.3241 (low Jul.9) would aim for 1.3239 (21-day sma) and finally 1.3197 (mo10-day sma). On the upside, the next resistance emerges at 1.3363 (high Jul.9) seconded by 1.3474 (high Jun.8) and then 1.3588 (200-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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