The declines in the pound sterling continued with the GBP falling to a fresh two-year low. The current bearish momentum in GBPUSD could eventually push it further down to test a three-year low. The declines come as investors adjust their expectations to price in a no-deal Brexit. The EU and the UK are in a stalemate with the Irish backstop arrangement being the sticking point for the two sides.
GBPUSD Rebounding off the Two-Year Low
The cable is seen rebounding off the lows at 1.2125, but price action remains confined to the previous H4 session. Given that the USD will be volatile today, GBP could likely rise in the near term. However, the upside bias remains weak at the moment. A breakdown below 1.2125 could, however, trigger further declines that could push GBPUSD down to 1.1990.
