GBP/USD heavy sub-1.2400, Article 50 trigger in focus

The GBP/USD pair has come under renewed selling pressure, and wavers just below 1.24 handle, as the London traders hit their desk and dump the pound, reacting to the overnight reports that the UK PM May has signed the Article 50 letter.

This implies that the formal process for the Britain to leave the EU has been initiated, with all eyes now  on the UK PM May’s speech and EU President Tusk’s press conference, after British Ambassador Tim Barrow delivers May’s letter to EU’s Tusk.

Cable remains heavily offered as markets clear out their GBP long positions after the recent run-up to 1.2600 levels, as they remain wary over a potential ‘Hard Brexit’ landing, should  the UK fail to clinch a deal to maintain access to the EU single market.

GBP/USD Levels to consider            

Jim Langlands at FXCharts explains, “Any technical levels seem rather redundant today although the short term momentum indicators are pointing lower, and back below 1.2420 could see a run towards 1.2350, possibly a fair bit lower. On the topside, resistance will be seen at 1.2500 and at the session high of 1.2595, which lies just ahead of the major trend resistance at 1.2640. Aside from Brexit, month-end flows, particularly into /out of the Euro could make for a very choppy session. Stand aside.”