GBPUSD SLIDES AS DUP COMMENTS SEND THE POUND LOWER
The GBPUSD pair has fallen below the 1.2700 level in Monday trading, as Democratic Unionist Party leader Arlene Foster has said she will seek to get the best possible deal for Northern Ireland in talks with the Conservative Party this week.
The British pound has started to move lower after the comments were made, as financial markets face the very real reality the two Parties may be unable to agree on terms of a coalition.
British Prime Minister Theresa May's Conservative Party needs the DUP Parties ten seats to be able to govern the UK after she failed to secure an absolute majority in parliament.
Technically the GBPUSD remains strongly bearish, trading beneath all lower time frame moving average indicators.
Selling pressure will continue to build for the pair whilst it trades below 1.2710 former support, now turned resistance, with 1.2740 now acting as strongest current intraday resistance above.
The daily 100 period moving average is now the foremost near term support for the pair, currently located at 1.2631.
A loss of the 1.2631 area should see the pair move towards the March 27th high at 1.2615, and then a possible move towards the 200 period average, on the mentioned time frame, located at 1.2521.