The pound sterling continued to retreat off the election highs. Focus shifts to this week’s BoE meeting. Although the election has cleared some uncertainty, investors are still doubtful.
PM Johnson promised to table the Brexit bill before Christmas. But concerns remain on whether the UK will be able to pull out of the EU by the January 31st deadline.
GBP/USD Forms a Lower High
The cable’s attempt to rebound was met with a lower high formation. Price action managed to rally to 1.3391 before reversing the gains. At the time of writing, GBPUSD is testing the minor support at 1.3320. If this level breaks, we expect to see a decline to the lower support at 1.32260.
