GBP/USD falls to a fresh low of 1.2735, its lowest level since 24 July

GBP/USD D1 22-09

The pressure on the pound is continuing to mount, as cable slips to its lowest level in two months and now brings the focus back towards the confluence of the key daily moving averages @ 1.2722-25.

As mentioned yesterday, the rejection at 1.3000 from last week is a bit of an ominous sign and the two factors weighing on the pound are continuing to intensify.

The UK is set to announce fresh measures to curb the virus spread and that will dampen hopes of a stronger economic recovery, while also increasing odds of the BOE moving towards negative rates territory moving forward.

For cable, the confluence of the 100 and 200-day moving averages @ 1.2722-25 is the key focus now and if that gives way, there isn't much stopping sellers from searching for a move towards 1.2500 next.

Add mounting Brexit pressures and a softer risk mood to the equation, things are certainly not looking too pretty for the pound against the dollar to start the week.

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