GBP still under pressure - as is PM May!
Fresh news this morning that PM May could face another vote of no confidence in June has put pressure on the Pound, with Cable pushing for 1.2800 this morning, alongside EUR/GBP pushing above 0.8725-30 again. A sustained move in the cross rate could see the move extend to test the next major area in the 0.8800-50 region, and this could mean a Cable push to and below 1.2775-85 at the very least.
It is worth noting that the PM has already agreed to stand down once a withdrawal deal has been found. This is looking unlikely at the present time, and there is not a lot of good news to help GBP at the moment with sellers coming in from the open.
Brexit will determine the destination of GBP in the near term and USD strength is not doing the Cable rate any favours - with yesterday's news on auto tariffs sending the pair up to 1.2875-80, so this is the first major resistance point should we see a recovery, with 1.2905-10 also likely to be tough.