The pound sterling has met stiff selling pressures despite a fire sale in the US dollar. The EU has expressed its resistance to allow Britain push back the withdrawal process, which prompted investors to fear that a no-deal is still on the table for next Friday. The pound is walking on thin ice today as Prime Minister May is scheduled to present her case to the 27 EU leaders, but an extension might be conditional on British parliament’s backing of her controversial deal.
On the technical side, cable is retreating towards the daily support of 1.3070. 1.3140 is the immediate support level. On the upside, 1.3220 is a key resistance in the short-term.
The sentiment-price correlation chart shows the sentiment sinking into the negative territory. Daily news sentiment is moving lower and in 50% of the last 10 occurrences price has fallen within 3 days.