GBP/USD falls to fresh lows under 1.2400 since 1 June
The pound continues to encounter some heavy selling this week, with the technical exhaustion starting to show after the recent move to 1.2800 last week.
Since then, sellers have slowly taken firmer control by pushing under key technical levels and the latest break under the 100-day MA (red line) yesterday is keeping the run going.
As for fundamental catalysts, the UK economy continues to encounter a bout of uncertainty and Brexit risks are still ongoing throughout – if you really want to go there.
But the charts have been telling more of the story this week for the pound, especially when you take a look at EUR/GBP:
The pair has been poised for a breakout since the middle of May but amid several tests of the 0.9000 handle, buyers have found it tough to crack the key handle up until yesterday. The daily close above is fueling the run higher and that is also weighing on the quid.
Up next is a test of the 29 May high @ 0.9055 and a run above that will keep buyers more poised to chase further upside (weaker pound) in the coming sessions.