The British pound sterling was trading weaker on Monday.
The declines came after PM Johnson rekindled Brexit talks, noting that the UK would leave the EU if no agreement was made by October end.
The US dollar strength is also partially responsible for the declines. With price action breaching the rising trend line, we expect GBPUSD to touch down to 1.3122.
Holding on to the support here could offer some short term respite. Any rebound could see price retesting the trend line break out level.
Watch for a possible close below 1.3122 which could signal a move to the 1.3000 handle next.
