The pound sterling fell on Tuesday after reports showed fading optimism on the newly proposed Brexit deal. The EU snubbed PM Johnson after he said that German Chancellor Angela Merkel made it difficult to strike a deal.
The move now potentially paves way for another possible extension to the October 31st deadline. Speculation is also rife that the UK could head for a snap election.
Can the GBPUSD Extend Declines Further?
The currency pair was largely trading flat into the start of this week. But Tuesday’s Brexit developments put further downside pressure. GBPUSD eventually broke to the downside from the range.
The currency pair is testing last week’s lows of 1.2203. Further declines are possible on a move lower. The next downside target is at 1.2082.
