Cable slips to session low on weaker pound

 

But with the voting result yesterday, it basically paves the way for a new British PM to pursue a no-deal outcome if they so choose to.

 

Cable buyers tried to move back above the 200-hour MA (blue line) in trading earlier today but sellers remained firm in keeping the bearish near-term bias. That is leading to a further extension to the downside now with support around 1.2661 being tested. Further bids are only lined up around 1.2645-50 next.

 

As mentioned several times in the past, the Brexit equation hasn't changed one bit. The European Union is adamant on not renegotiating the withdrawal agreement, hence it's either parliament somehow finds a compromise on the current Brexit deal or we're headed towards a potential no-deal outcome.

 

If the new prime minister wants to avoid the latter, then a general election - which I see as being most likely - or a second referendum will be the other options.