The pound sterling was down by over one and half percent on Tuesday. The declines came on concerns on a hard-Brexit. PM Johnson said that the post-Brexit standstill period would remain until end of next year.
This means that the UK will leave the EU regardless of a Brexit deal by end of next year. Johnson is expected to table the bill in the UK parliament this week.
GBP/USD on Track to Test the Support
The currency pair’s current declines will likely see a drop to the lower support area at 1.3100. This would push the pair back to the pre-election lows, just before it surged.
The price level at 1.3226 will be key in the short term. If this level acts as resistance, then we anticipate further declines.
