GBP is one of the main outsiders in the forex market
On Monday, the British currency resumed its decline and is currently trading near the session lows at 1.2299. Dealers note that the risk balance remains shifted in favor of the bears in the short term, given the news background and changes in the technical picture.
The lull in the stock markets, which ended last week with a fall, had a positive event for GBP/USD, but bulls continue to be worried about Brexit. The reason for the growing tension was the reports that British Prime Minister Boris Johnson during his conversation with Polish Prime Minister on Saturday expressed his willingness to negotiate constructively in order to reach a compromise, but equally ready for a transition period on "Australian" terms, if an agreement can not be reached. By "Australian" is meant a trade agreement with very general terms, which is based on the rules of the World Trade Organization (WTO), that is, in fact, the same Bracket without a deal.
Favorable for the bears by the pound were also the latest changes in the technical picture: the trend line was broken since March, and an attempt to return higher turned out to be a failure. The support at 1.2275 is now in focus (38.2% of growth since March), a breakthrough below will open the way to a minimum on May 18 at 1.2076.