The pair touched a high of 1.2188 prior in the day but confronted resistance from the 23.6 retracement level and tumbled off from that point. Furthermore, price has now dropped underneath the 100-hour Moving Average at 1.2147.
Brexit uncertainty remains the key driver for the GBP and with UK PM Boris Johnson’s senior adviser – Dominic Cummings saying that a no-bargain Brexit is unavoidable, it is frightening investors a little as we start the new week. Today’s release of the UK services PMI could also impact Sterling.
On the broader picture, things haven’t generally changed for the pair. Price still needs to manage a break beneath the 1.2110 level – March 2017 low – just as the trendline support since August a year ago, which is seen at 1.2098 this week. If we see sellers hold a break beneath those levels, buyers can rely on those levels for some relief.