The pound weakens as traders stay wary of political and economic uncertainties in Britain. The rebound came under pressure at 0.8780 at the origin of a mid-August sell-off. A bearish MA cross on the daily chart suggests a shift in sentiment, and the euro could be vulnerable unless it clears the said resistance. A bullish breakout may trigger an extended rally above 0.8850. The demand zone between 0.8580 and 0.8650 is a major level to keep the single currency afloat, or a deeper correction might send it below 0.8450.
