The pound continues to fall with cable slipping amid a firmer dollar as well
GBP/USD is now hitting session lows as price runs into a test of the 200-hour MA (blue line) @ 1.2668. After breaking below the 100-hour MA (red line) earlier after poor UK data, sellers are now looking to establish a more bearish near-term bias in the pair once again.
This will be a key support level for buyers to hang on to with further support seen around 1.2661 and some bids located at 1.2650. But beyond that, it'll be tough for buyers to pick at any firm levels to defend with the Tory leadership contest coming up.
Not to mention today, we're hearing the likes of Andrea Leadsom, Jeremy Hunt, and Dominic Raab all talk up chances of leaving on 31 October without a Brexit deal. With all candidates pursuing such a pledge, it's hard to imagine the Tory leadership contest being a source of comfort for the pound in the coming weeks.
