Technical Analysis

Cable falls to near two-week low as dollar gathers some strength

GBP/USD falls to a low of 1.2634, weakest level since 3 June


The dollar is posting fresh gains on the session, rising against the likes of the euro, pound, swissie and loonie with cable notably falling to its weakest level in almost two weeks. This comes after price was rejected at key near-term levels overnight around the 100 and 200-hour moving averages as seen above.

For the pound in general, the week started with much hope but that all came crashing down following Labour’s failed motion to stop a no-deal Brexit. With Boris Johnson firmly in the lead and saying that he will take the UK out of the EU regardless of how on 31 October, the risks are clear as long as that remains the tagline during the Tory leadership contest: A no-deal Brexit is still very much on the table for now.

Cable is currently running into support around 1.2637 with further near-term support seen closer to 1.2610 before bids are lined up around 1.2600.

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