GBP/USD refreshes session lows, 1.3200 mark back on sight

   “¢   Brexit uncertainties continue to dent sentiment surrounding the GBP.
   “¢   Investors remain sceptic over May’s ability to gather enough support.

The GBP/USD pair’s attempted intraday bounce ran out of steam near the 1.3275 region, with bears now eyeing a move back towards the 1.3200 round figure mark.  

The British Pound came under some renewed selling pressure at the start of a new trading week amid scepticism over the UK PM Theresa May’s ability to gather enough support of the third meaningful vote. The view was further reinforced by Eurosceptic UK lawmaker John Redwood’s remarks, saying that there are a lot of people still opposed to May’s deal and go beyond the European Research Group (ERG).  

Meanwhile, the latest leg of a sudden fall over the past couple of hours came in reaction to European Parliament’s Brexit coordinator Guy Verhofstadt’s comments, saying that the EU may not grant the extension to Article 50 if May fails to get the majority of lawmakers to back her deal.

Hence, the key focal point for GBP traders will be on the next meaningful vote, possibly on Wednesday, which if fails might force the government to request a longer extension, as against May’s preference to have a short extension, and eventually prolong Brexit uncertainties.  

The already weaker pair was further pressurized by a modest US Dollar rebound during the early North-American session, through lacked any strong follow-through amid a subdued action around the US Treasury bond yields and might help limit deeper losses.

Technical levels to watch