The Cable extends the drop toward 1.3200 as fears of a no-deal Brexit gain momentum. UK PM Boris Johnson warned the EU by saying: “if no deal is reached by October 15 with the EU, both sides should accept that and move on.” Also negatively affecting the pair could be the US dollar’s last week’s recovery triggered by the much better than expected NFP data. Although the Brexit uncertainties have played their role to weigh on the market sentiment, US-China tensions escalate as the Trump administration considers cutting trade with China’s biggest semiconductor manufacturer. Although the US market is closed due to the Labor Day, any negative Brexit news will probably push the Pound below 1.32.
Support: 1.3160 / 1.31
Resistance: 1.3250 / 1.33
