The British Pound extended losses against the Dollar on Wednesday amid speculation over Prime Minister Theresa May’s Brexit deal crashing into a brick wall.
Market expectations over May potentially facing a leadership challenge also compounded to the overall uncertainty, and this continues to be reflected in Sterling’s valuation. With buying sentiment towards the British Pound set to diminish further thanks to the terrible combination of Brexit related uncertainty and political drama in the UK, the GBPUSD is positioned to trend lower. Technical traders will continue to closely observe how prices behave around the 1.2850 regions. A solid weekly close below this point has the potential to open a path towards 1.2700. Should 1.2850 prove to be stubborn support, the GBPUSD could end up retesting the psychological 1.3000 level.
GBPJPY tumbles below 141.00
The GBPJPY crashed over 100 pips today thanks to Brexit uncertainty with prices trading below 141.00 as of writing. Price action confirms that the currency pair remains bearish on the daily timeframe as there have been consistently lower lows and lower highs. A strong daily close below 141.00 should signal a steeper decline towards 139.90 and 138.00, respectively.
USDJPY presses against 109.60
USDJPY bulls made a late appearance on Wednesday afternoon as prices rebounded back towards 109.60. With trade tensions still weighing on sentiment and safe-haven assets in demand, the USDJPY upside could face headwinds down the road. Sustained weakness below 109.60 is likely to trigger a move back towards 109.00. Alternatively, a breakout above 109.60 should open a path towards 110.00.
EURUSD bears looking to conquer 1.1200
The EURUSD remains bearish on the weekly timeframe with prices trading within a bearish channel. A solid weekly close below the 1.1200 support level is likely to inspire a steeper decline towards 1.1120 and 1.1000 in the medium term. Should 1.1200 prove to be a strong support level, the EURUSD could 1.1310.