The British pound plunged in early European trading on news that UK Brexit minister Dominic Raab resigned.
Cable dipped to two-day low at 1.2846 on news, reversing the most of recovery in past two days and shifting focus towards pivotal support at 1.2827 (12 Nov low).
Technical structure on lower timeframes weakened, keeping the downside vulnerable, with loss of 1.2827 pivot to risk return to key near-term support at 1.2695 (30 Oct low).
Since the pound was very sensitive on any news about Brexit, which was recently the key driver, today’s news could have very strong impact on pound’s sentiment, as concerns of disorderly divorce on no-deal scenario rise again.
UK retail sales are due in a while (Oct m/m 0.2% f/c vs -0.8% prev) but would have minor impact on better than expected results as Brexit story dominates.
Res: 1.2937, 1.2980, 1.3000, 1.3029
Sup: 1.2846, 1.2827, 1.2764, 1.2695
