The pound sterling was down over 1.5% on the day on Monday. The declines came after the UK took a hard stance on the Brexit deal with the EU. The Boris Johnson led government said that it is prepared to leave the EU without a deal. The Irish backstop arrangement continues to remain the main sticking point in the negotiation.
GBPUSD Could Slip to 1.20
The sharp declines in the currency pair come after price broke the support level near 1.2400. Following the breakdown from the support, the pair gathered momentum. GBPUSD is trading at 1.2155 at the time of writing. The bearish momentum could eventually push the GBPUSD even lower to the next major support at 1.20.
