- Persistent no-deal Brexit fears continue to dent sentiment around the GBP.
- Raab’s comments do little to ease concerns and added to the bearish pressure.
- The ongoing USD bullish run further collaborates to the downward trajectory.
The GBP/USD pair remained depressed at the start of a new trading week and dropped to fresh 28-month lows, around the 1.2335 region in the last hour.
The British Pound is turning out to be one of the weakest major currencies and continues to be weighed down by rising fears of a no-deal Brexit, especially after the new UK PM Boris Johnson assembled a cabinet that advocates a hard-line stance about leaving the European Union.
Meanwhile, the latest leg of a sudden drop over the past hour or so came after the UK foreign secretary, Dominic Raab reiterate the government’s stance on Brexit negotiations by calling the EU stubborn and said that they must be the one to move.
The pair was further pressurized by the prevalent bullish sentiment surrounding the US Dollar – supported by Friday’s upbeat US GDP print, which diminished odds of an aggressive monetary easing by the Fed at its upcoming meeting on July 30-31.
It would now be interesting to see if the pair is able to find any support at lower levels or continues with its bearish trajectory amid absent relevant market-moving economic releases, though oversold conditions might help limit the downside, at least for now.
Technical levels to watch
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