GBP/USD sets a new low for 2018, on pace for further declines

The GBP/USD is trading into 1.2940 heading into Tuesday's London market session after slipping from the 1.30 major handle on Monday amid fresh concerns regarding the UK's ability to avert a hard Brexit.

The UK's efforts to split from the European Union are back in focus this week, with Brexit negotiations set to begin again this month with Prime Minister Theresa May at the helm of trade talks. 

Fears that the UK will be heading into the official Brexit day next March are on the rise, taking the GBP down the charts for four straight weeks, with the UK's own trade secretary Liam Fox putting odds of a hard Brexit at 60-40.

Little meaningful data exists on the calendar today for the GBP/USD, and traders will be forced to face the full brunt of bearish Brexit winds; monthly and quarterly Halifax Housing Prices are due at 07:30 GMT, with the m/m index expected to slip from 0.3% to 0.2% while the quarterly/yearly number is forecast to bump upwards to 2.6% over the previous 1.8%.

GBP/USD levels to watch

The Sterling-Dollar pairing fell to a new low for 2018 of 1.2920 in late Monday's US trading session, and as FXStreet's own Valeria Bednarik noted, "the pair bounced from the mentioned low but remains at levels last seen in September 2017, and below the previous yearly low at around 1.2960, now the immediate resistance.  In the short-term, the pair is extremely oversold, but there are no signs that a bottom has been reached, as in the 4 hours chart, the pair plunged well below a now bearish 20 SMA, while technical indicators remain in neutral territory, the Momentum aiming modestly higher, following price, but the RSI aiming to resume its decline currently at 22."

Support levels: 1.2920 1.2885 1.2840                                                                                       

Resistance levels: 1.2965 1.3000 1.3045