The pound is trading at the 1.31 handle, relatively lower in the wider range. What’s next? The team at TD focuses on Brexit woes and sees some potential to the downside.

Here is their view, courtesy of eFXnews:

TD FX Strategy Research discusses GBP Outlook in light of the recent Brexit headlines which continue to take their toll on GBP.

The latest move was stoked by media reports that showed 40 Conservative MPs would sign a letter of no confidence against May. That number is just 8 shy of the total needed to trigger a leadership battle. This potential leadership challenge could come two weeks before the UK is required to show process on the divorce settlement (Brexit payment), which would also begin the second round of negotiations. The Autumn budget is also due in the next two weeks….

 We continue to eye the 1.30 level that, if broken, opens up a move to the mid-1.28 area and near-term like EURGBP upside and GBPNZD downside, TD argues.