STERLING DROPS ON UK POLITICS
The British pound has fallen to its lowest trading level against the U.S dollar since September 7th, hitting 1.3073, as speculation grows that the United Kingdom's Prime Minister Theresa May will be ousted as leader of the Conservative party.
The intraday trading sentiment surrounding the GBPUSD currency pair is now extremely bearish, with technical selling likely to accelerate while the pair remains below the 1.3140 key level.
Despite the GBPUSD pair moving into oversold territory on a number of key technical indicators, intraday selling momentum continues to accelerate.
Later today, the pair faces a key risk-event from the U.S Non-farm payrolls job report, with most analysts predicting a headline figure below 100,000 for September.
Key intraday support for the GBPUSD pair is found at its 100-day moving average, at 1.3039, and the psychological 1.3000 level. Below 1.3000, further support is found at 1.2921 and the pairs 200-day moving average, at 1.2833.
To the upside, key intraday resistance is found at 1.3100, and the former swing high, at 1.3108. Above 1.3108, the pairs key 50-day moving average, at 1.3145, acts a critical daily resistance.