GBP/USD hits fresh lows after UK PM May press conference
- The pound dropped further after May’s press conference but at a moderate pace.
- Worst day in months for GBP amid Brexit and political uncertainty.
The GBP/USD fell to 1.2723 after UK PM press conference, hitting a fresh 2-week low and moving close to October lower. Then bounced modestly to the upside and it is trading at 1.02750/60, down more than 200 pips for the day, having the worst performance in months.
UK PM May stood firm on her position and defended her Brexit plan, arguing that it delivers on what the people voted. She repeated there won’t be a second referendum. The pound attempted to recover ground while May was speaking but then drooped further after Times reported that Michael Gove is expected to resign as Environment Secretary. Earlier today, the pound was already lower after Raab’s resignation and also following UK data that showed retail sales fell unexpectedly in October for the second month in a row (-0.5%).
The pound remains under pressure in the market, affected by uncertainty about Brexit and also by the UK political environment. The situation offers no signals of improvement in the short-term and could continue to limit any recovery of the currency.
GBP/USD Levels to watch
The slide found support near the 1.2700/1.2690 zone (October lows), a break lower could clear the way for a test of 2018 lows at 1.2660. Below the next supports could be seen at 1.2620 and 1.2580. On the upside, resistance levels might be located at 1.2780, 1.2825 (Nov 12 low) and 1.2855.