Pound sinks as Brexit mood music sours

GBP/USD falls to support around 1.3290-00, which stalled last week’s decline

GBP/USD H1 07-12
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Talk of the UK walking away and finger-pointing on the fisheries issue has sent the pound much lower on the session, with cable declining by over 1% below 1.3300 currently.

The pair is now meeting some support around 1.3290-00, which helped to stall last week’s drop but a break below that could easily open up a path towards 1.3200 next.

It is all about headline risks and sentiment right now and while this may still end up being part of the political act from both sides, it will be a test of pound buyers’ appetite in the meantime as the toughening rhetoric plays out after talks over the weekend.

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