Sterling plummets on Brexit fears and fresh China -U.S. tensions.
Sterling falling strongly as the investors are starting to fear the UK and EU negotiators will not be able to strike a trade deal before a looming year-end deadline. Irish Prime Minister Micheal Martin said the chances of a deal were 50-50, while bank JPMorgan said probability of a no-trade deal exit just rose to 33% from 20%. The strengthening USD bullishness on the renewed China-U.S. tensions is also adding to the bearish pressure on GBPUSD after it was reported Washington was preparing sanctions on Chinese officials over their role in Beijing’s disqualification of elected opposition legislators in Hong Kong. In response- China said it firmly opposed U.S. interference in its domestic affairs.
Expect sellers on upward corrections.
Next support to watch – 1.3195
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