GBP/USD slides further below mid-1.2100s, fresh session lows

The GBP/USD pair traded with a mild negative bias through the mid-European session on Wednesday and is currently placed at the lower end of its daily trading range, just below mid-1.2100s.
 
Having failed to capitalize on the previous session's attempted recovery move to levels just above the 1.2200 handle, the pair met with some fresh supply on Wednesday. Persistent uncertainty surrounding Britain's exit from the European Union seemed to be one of the key factors holding investors from buying the British Pound and kept exerting some pressure on the major.
 
As Yohay Elam, FXStreet's own Analyst explained, “PM Boris Johnson's government has reiterated its rejection of the thorny Irish backstop while the bloc says it cannot be dropped. Fears of a hard Brexit are growing as Dominic Cummings – Johnson's de-facto chief of staff and the mastermind of the Vote Leave campaign – is reportedly pushing to bypass parliament in order to ram through a no-deal exit.”
 
Market concerns were further fueled by Irish finance minister Paschal Donohoe's comments on Wednesday saying that backstop has to be in the Brexit withdrawal agreement and that there is a growing and material risk of a no-deal Brexit, which further dented the already weaker sentiment surrounding the British Pound and collaborated to the pair's offered tone.
 
Meanwhile, a subdued US Dollar price action - amid a fresh leg of a free-fall in the US Treasury bond yields – did little to influence the price action, albeit might help limit any further downside. From a technical perspective, the pair has now moved on the verge of a fresh near-term bearish breakdown, which if confirmed might set the stage for a further downfall towards challenging the key 1.20 psychological mark.
 
Moving ahead, a scheduled speech by Chicago Fed President Charles Evans might influence the USD price dynamics and further collaborate towards producing some short-term trading opportunities in absence of any major market-moving economic releases - either from the UK or the US.

Technical levels to watch