Cable falls to session lows, drops below 1.3500
GBP/USD slips to a low of 1.3494 on the day
A sudden drop sees cable fall below the 1.3500 level, and below key support levels on the hourly chart. The 38.2 retracement level stemmed losses in cable yesterday, but now it looks like we're set for a move lower.
Buyers have failed to get above the 100-hour MA in yesterday's trading after the bounce, and that kept sellers in control and today we have found a new leg lower as Brexit woes start to weigh in.
Earlier comments by the BCC here didn't help too much either, as they emphasised the point I mentioned earlier in the month that stagnant wages are not going to help consumers in the wake of rising inflation and that could ultimately haunt the sterling over the longer term.