The pound sterling extended losses sharply on Monday. The declines came on rumors that PM Johnson would be planning for a snap election ahead of the Brexit deadline. Earlier in the day, IHS Markit’s manufacturing PMI fell at the fastest pace since 2012. The manufacturing PMI fell to 47.4 in August from 48.0 the month before.
GBPUSD Invalidates the Descending Wedge Pattern
The currency pair invalidated the descending wedge pattern after falling below the key levels of 1.2170 and 1.2082. The declines will likely see the currency pair consolidating near the lows. Further gains will depend on the fundamental news flows. In the near term, the currency pair will see prices staying within 1.2082 – 1.2026.
