The return of UK lawmakers to parliament after the government lost the Supreme Court rulingnL5N26F3IF has been a sterling-negative, underlining the deep divides in opinion nL5N26G4KC.
GBP/USD closed below 1.2344, 38.2% of the September bounce and the 1.2351 21 DMA, which was pivotal support for the September rise.
Daily charts show momentum studies, 5 and 10 DMA's all falling, which initially targets 1.2271, 50% of September's rise.
PM Johnson is making exaggerated statements in Parliament and to the media nL5N26H2MD, including referring to the law that forces him to delay Brexit if he fails to secure an EU deal as a "surrender act" nL5N26H3JC.
The tactics appear to be orchestrated by his chief adviser Cummings, who described the current Brexit and parliamentary chaos as a "walk in the park" compared to his experience in the 2016 Brexit referendum nL5N26H6OV.
He is confident that Brexit will go ahead and the Conservative Party will triumph at the next election, despite a string of parliamentary defeats. Click here has the Conservatives at 2/5 - strong favourites to win an election, though they may not secure a majority in parliament.
After stalling at 1.2600 last week, cable appears to be heading for the August congestion area around 1.2100.
gbp 2 sep 27 Click here