Cable slumps to session low as pound stays pressured once again

Technical Analysis

Author: Justin Low | gbpusd

The pound just can't catch a break this week

GBP/USD D1 16-05
Cross-party talks appear to be all but over, failing to produce any real compromise as now the attention will turn towards May's withdrawal agreement bill once again. She will bring that to a vote in parliament on the first week of June and guess what? It isn't going to pass, as we have seen on the three other occasions in the past.

With little or no real direction on how to resolve the current Brexit impasse, the pound is continuing to take a hit with cable falling to a low of 1.2822 on the session now following a notable drop overnight.

Price is now trading at fresh lows since February and looks set to test a break below the trendline support from March to April, which holds at 1.2831 currently.

As for Brexit news today, May will be meeting with the 1922 Committee later on where she is expected to give a firm date on when she will be vacating her post. Failing which, the committee is expected to take matters into their own hands and we could be staring at a confidence vote in the second week of June.

Further support for cable is now seen around the region of 1.2773-86.

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