Cable falls below the 1.2400 handle as pound woes continue in the new day

Technical Analysis

Author: Justin Low | gbpusd

Brand new day, same old story for the pound

GBP/USD D1 17-07
ForexLive
Cable is making fresh lows for the year as price falls to a session low of 1.2383 as the pound holds weaker to start the European morning once again.

As mentioned earlier, the 1.2400 handle will be a key level for buyers to stay above today and if price starts to run at and below support around 1.2351-77, it's a slippery slope for cable potentially towards 1.2000 or 1.2100 at least.

There isn't any fresh rhetoric on the Brexit saga overnight but sentiment remains that Johnson or Hunt are going to be drawing a hard line in negotiations with the EU and that won't end well with EU lawmakers insisting that there won't be a renegotiation.

For now, watch out for support around 1.2351-77 from the March/April 2017 swing lows. That's the next key area of support before sellers start chasing a further move lower.

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