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  • No deal Brexit fears continue to weigh on GBP.
  • UK’s Raab says they are ‘turbo-charging’ no deal Brexit preparations.
  • GBP/USD slumps to lowest level since April 2017,  loses more than 100 pips.

The British pound is suffering heavy losses against its major rivals on Monday as revived fears of no deal Brexit force  investors to move away from the currency. The EUR/GBP pair gained more than 1% today and touched its highest level since early January at 0.9085 and was last seen trading at 0.9078.

UK heading to a hard Brexit?

Following Cabinet Officer Minister Gove’s comments about no-deal being a real prospect over the weekend, British Foreign Secretary Dominic Raab said that they were ‘turbo-charging’ no deal Brexit preparations. Furthermore, British Prime Minister Boris Johnson’s spokeswoman told reporters that if the EU continues to refuse to reopen the Withdrawal Agreement to negotiation they must assume that there will be a no deal. “The government’s central focus is preparing for that,” the spokeswoman added.

Reflecting the broad GBP weakness, the GBP/USD pair slumped to its lowest level since April 2017 at 1.2243 and is now down 1% on the day at 1.2260.

Technical levels to watch for