This isn’t a good time for the pound. Boris Johnson’s election to the UK premiere didn’t help much with the GBP, after a moment of strengthening the GBPUSD pair is still heading south. Information from government sources about the preparation of the UK for hard Brexit does not positively influence the sentiment on the pound. Further remarks by UK Secretary of State for Foreign Affairs, Dominic Raab, that the EU is stubborn and unwilling to make concessions and will be guilty of leaving the UK without an agreement, are already being reflected in the pair’s downward trend since this morning.
Boris Johnson’s government continues to raise the no-deal Brexit rhetoric and does not help the pound to find any support, the pound has fallen to its lowest level since March 2017 against the dollar. It seems that having no idea of painless leaving the Union, they will look for the guilty on the other side of the channel and this is not good news for the pound in the short term.
Analyzing GBPUSD from the purely technical side, we can see that the price broke out from the Inside bar and without much hesitation goes south. In view of the above mentioned political situation, we can expect further declines towards demand zone 1.2215, where an upward correction may occur.