GBP/USD touches a low of 1.3152 on the day
Brexit reality is starting to hit the pound as negotiations between the UK and the EU look set to stall further and chances of a deal start to slip towards December. Cable now slips to session lows on the day with the pound lower across the board against the major currencies bloc. For cable, a test of the 200-hour MA (blue line) looks to be on the cards now as price falls below the 100-hour MA (red line).
A break below the 200-hour MA would turn near-term bias more bearish. Further support is then seen at the 1.3100 handle as the 100-day MA comes in at 1.3097. Beyond that, further support is then seen at 1.3067.
Aside from Brexit risks, there is also the UK inflation report set to be released at the bottom of the hour. But as mentioned in the docket preview, it’s no game changer to the current pound outlook as the main focus remains on Brexit.