Pound falls further as Irish backstop proposal doesn't look to be on the cards this week

GBP/USD slips to a low of 1.3033

If Raab was supposed to head to Brussels to present a solution to the Irish backstop/border by Wednesday, the comments here certainly doesn't suggest so. And pound traders are not liking it one bit.

The comments by Theresa May's spokesman there doesn't inspire a lot of confidence and by the looks of it, we're not going to be getting any form of substantial negotiations to come in the EU Summit next week.

If you're waiting for the EU to kick the can down the road, well the UK has already done that it seems so all there's left is to look forward to November or the end of "autumn" since that is now the new target for a deal to be struck.

However, with the lack of progress so far it's going to be a long and dragged out period for the pound. Cable now heads towards a test of the 100-hour MA (red line) @ 1.3020 next. Break below that and the near-term bias turns more bearish. Further support can be found at the 1.3000 level thereafter.