The Sterling pound is heading lower as a result of strong demand on the US dollar after the holiday. UK Brexit worries, political uncertainty and firmer treasury yields add more pressure to the British pound. Focus will be on BoE Tenreyro who is a dovish speaker. He will address a speech later today. Meanwhile, the dollar kicked higher awaiting the factory orders data which is a main release that will be published later.
The British pound dropped and is trading in a downward channel below the 10 and 20 MA which are crossed downwards. The RSI is crossing the MA9 keeping sellers more hopeful of further downside. MACD is below the signal line with a strong negative histogram. Sellers have to break 1.1975 to continue the bearish trend toward 1.1934 whereby level 1.19 will be in focus. Buyers will look for a move above 1.2125 to open the door toward 1.2165 to continue the move above 1.2187.
Key levels to watch from the downside 1.1975, 1.1934, 1.19 – from the upside 1.2125, 1.2165, 1.2187