Pound slips to session lows as UK political worries begin to creep in again

Technical Analysis

Author: Justin Low | gbpusd

More word is spreading on potential resignations from the Tory party

GBP/USD H1 20-02
And with that, cable hits a low of 1.3036 on the session now. This was the earlier news that hit yesterday. And now the BBC is also reporting that there are 'strong rumours' that three Tory lawmakers would defect to the Independent Group later this morning, with anticipation it could happen before PMQs later.

Should this really happen, expect the jitters to continue to weigh further on the pound as markets will fear that more resignations are to follow. As mentioned earlier in the week, resignation among Tory lawmakers will be more pronounced and have a bigger impact on the pound as it would reduce May's majority in parliament.

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