The British pound continues to go down as political risks intensify.

The British pound continues to go down as political risks intensify.

A lot of political uncertainties are driving the British pound down. The main of them is, of course, connected with the question: "How long Theresa May will stay a prime minister?"

Her proposal to publish a new withdrawal agreement bill (WAB) this Friday was not welcomed by her colleagues. The new agreement suggests the possibility of the second referendum and the customs union.

Reportedly, Theresa May will face another non-confidence vote tomorrow, if she does not announce the date of her departure.

What may be a game changer today?

  •  Theresa May will meet with the ministers today;
  • The Cabinet will try to find a solution on delivering Brexit no matter what.

Technical levels for GBP/USD

The pair is testing the significant support level at 1.2603. If today's talks do not result in any breakthrough, the pair will fall further to the last December's lows. The next support will be placed at 1.2493. If the pair is supported today, it will rise to the resistance at 1.26882.

RSI is moving within the oversold zone and Stochastic formed a crossover within this zone, which may signal a possible buying opportunity.

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The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time. 

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