GBP/USD plunges close to monthly lows

Extending its reversal from Thursday's weekly high, the GBP/USD pair is now sliding farther below 1.3000 handle. 

Currently trading at a fresh session low around 1.2960 region, the pair came under intense selling pressure after comments from UK foreign minister Boris Johnson that Article 50 would be triggered in early 2017 resurfaced uncertainty over Brexit-led UK economic fallout. 

Moreover, possibilities of stops getting triggered on a sustained drop back below 1.3000 could also be one of the factors contributing to the pair's ongoing sharp slide and dragging it back close to monthly lows support near 1.2950-45 area touched on Wednesday. 

As Carol Harmer, Founder at charmertradingacademy.com, mentioned in her analysis that a break below 1.2975 support, "there will look to be further downside pressure evident....We would then expect the market to weaken down towards 1.2955/45 and even down there we would be buyers...We would only worry about longs if we lost 1.2880...."

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "A break below the mentioned low, should result in the pair retesting the weekly low of 1.2944, with further slides below this past exposing the 1.2880 price zone. Selling interest is capping the upside around 1.3035, and it will take an advance above this last to revert the short term negative tone and see the pair recovering up to 1.3065."