“¢ The British Pound continues to slide in the aftermath of May’s new Brexit plan.
“¢ Reports suggest Cabinet ministers might force May out of the office early next week.
“¢ Subdued USD demand/oversold conditions do little to ease the bearish pressure.
The bearish pressure surrounding the British Pound remains unabated, with the GBP/USD pair sliding below mid-1.2600s, or fresh multi-month lows in the last hour.
The pair continued losing ground through the mid-European session on Wednesday and added to its recent heavy losses recorded over the past two weeks or so, from the vicinity of the 1.3200 handle touched earlier this month.
The fact that investors remain convinced that the UK PM Theresa May’s new Brexit proposal might struggle to gather enough support from British MPs continued denting the already weaker sentiment around the Sterling.
Adding to this, Cabinet ministers were reported saying that they cannot vote for May’s Brexit deal and push to force her out of office as early as next week, which further collaborated towards aggravating the bearish pressure.
Meanwhile, a subdued US Dollar demand, amid a mildly softer tone around the US Treasury bond yields ahead of the latest FOMC meeting minutes also did little to hinder the ongoing slide to the lowest level since early Jan.
It, however, remains to be seen if the pair continues with its bearish trajectory or finds some support at lower levels amid highly oversold conditions and mounting Brexit uncertainties and the UK political chaos.
Technical levels to watch
As Yohay Elam, FXStreet’s own Analyst writes: “the fresh four-month low of 1.2660 provides immediate support. It is followed by 1.2610 which was a temporary low earlier this year and 1.2530 that was a swing low in December 2018.”
“Some resistance awaits at 1.2685, Tuesday’s low. It is followed by 1.2710 that was a low point late last week. Next up we find 1.2775 which was the low point in February,” he added further.
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