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GBP / USD updates 28-month lows

GBP / USD updates 28-month lows

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Jim Anderson - Public Relations

GBP / USD remains at the beginning of the new week under strong downward pressure, shifting 28-month lows to 1.2335. The pound is now one of the weakest currencies on Forex due to the heightened threat of chaotic Brexit. Market fears have intensified against the background of the recent report that the new B. Johnson's team has stepped up preparations for Brexit without a deal.

Meanwhile, the Confederation of British Industrialists (CBI) published a report last weekend in which it was concluded that neither Britain nor the EU is properly prepared for Brexit without a deal. At the opening of the Europe market, the situation was further aggravated by the grim statements of British Foreign Minister D Raad.

Meanwhile, the US dollar is consolidating after its growth, driven by the strong results of the US Q2 GDP report on Friday. The decent performance allowed the markets to reconsider their expectations regarding too aggressive easing of the Fed's policy following the meeting, which will take place this Wednesday. As a result, the pair tested daily support at 1.2351-77 (March-April 2017 area). Further, the bearish target was the lows of March 2017 at 1.2110.