Sterling drops broadly this week breaking out near term support against Dollar and Yen. The next round of UK Conservative leadership voting will be held today. For now, despite the lack of public appearances, face of the Brexit campaign Boris Johnson appears to be unstoppable. Jeremy Hunt and Michael Gove are believed to have secured enough votes for the next round. Meanwhile, Sajid Javid, Rory Stewart and Dominic Raab are still battling for support. Those staying in the race after current around will compete in a BBC debate later in the evening. That would likely be Johnson’s first TV appearance since the race started. Pound is also weighed down by news that Chancellor of Exchequer Philip Hammond is “prepared to resign” over Prime Minister Theresa May’s legacy spending plans.
Let’s have a quick review on Sterling pairs. GBP/USD broke 1.2559 support to resume the fall from 1.3381. It’s now on track to retest 1.2391 low.
GBP/JPY also resumed recent fall from 148.87 and is targeting a test on 131.51 low.
EUR/GBP is reaccelerating, as seen in daily MACD. It’s targeting 0.9101 key resistance.
GBP/CHF also resumed the fall from 1.3399 and is now targeting 1.2297 low.
