It's not a pretty picture in cable

Technical Analysis

Author: Adam Button | cable

GBP/USD down a 100 pips

Candidates to take over from Theresa May ramped up no-deal Brexit talk in the final stretch of the leadership race. Both Hunt and Johnson today said the Irish border backstop will need to be scrapped.

That's a thorny issue that has never come close to a solution that could be embraced by the EU, coalition partner DUP and parliament. The losses extended after a concrete sign that Johnson may be ready to take action to suspend parliament around the time of the Brexit expiration date on October 31.
GBP/USD down a 100 pips
Technically, today's low of 1.2397 marked the worst level since April 2017 and it breaks that major support line.

That leaves little in the way of a test of 1.2000. Technically, it's tough to argue against shorts but what has me worries is that positioning is already deep into shorts and the political rhetoric doesn't reflect parliament.

I outlined how this would all unfold back in late May.

Another one to watch is GBP/JPY, which still has a bit of breathing room ahead of the flash crash low.
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