GBP/USD refreshes YTD lows on report that UK PM May will delay Brexit vote

Haresh Menghani FXStreet

• Reports that May will pull Tuesday meaningful vote prompts some aggressive selling.
• EU comments that this is the only deal possible (non-negotiable) further dents the sentiment.

The GBP/USD pair extended its intraday decline and tumbled to fresh YTD lows, around mid-1.2700s in the last hour.

The British Pound came under some renewed selling pressure in reaction to Bloomberg report that the UK PM Theresa May will pull Tuesday's vote to avoid facing a huge defeat.

The news is yet to be officially confirmed and the bearish traders also seemed rather unaffected by the UK government spokeswoman, Alison Donnelly's confirmation that Tuesday's meaningful vote on May's Brexit plan would move ahead as planned.

Sentiment surrounding the British Pound got another hit after the European Commission was out with some comments and said that the deal on the table is final, and we will not renegotiate on the Brexit agreement.

It would now be interesting to see if the pair is able to find any buying interest at lower levels or today's downfall marks a fresh near-term bearish breakdown amid persistent Brexit uncertainties.

Technical levels to watch

A follow-through selling has the potential to continue dragging the pair further towards the 1.2610-1.2600 support area. On the flip side, any attempted recovery might now confront some fresh supply near the 1.2700-1.2710 region, which if cleared might trigger a near-term short-covering bounce.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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