• Brexit worries kept GBP bulls on the defensive.
• A modest USD uptick prompts some fresh selling.
• Technical selling accelerates the ongoing downfall.
The GBP/USD pair finally broke down of its Asian session consolidation phase and refreshed YTD lows in the last hour.
The US Dollar remained supported by Friday's monthly jobs report, which reinforced expectations that the Fed will stick to its gradual monetary policy tightening cycle, and was seen as one of the key factors prompting some fresh selling at the start of a new trading week.
Adding to this, Brexit concerns returned to the forefront after the UK trade minister Liam Fox highlighted that a no-deal Brexit is the most likely outcome now and exerted some additional downward pressure around the British Pound.
The latest leg of downfall over the past hour or so could also be attributed to some technical selling below Friday's swing low level of 1.2976, touched in the aftermath of disappointing UK services PMI print for the month of July.
It would now be interesting to see if the pair is able to find any support at lower levels or the current fall marks a fresh bearish breakdown, paving the way for an extension of the near-term downward trajectory amid absent market-moving economic releases, either from the UK or the US.
Technical levels to watch
A follow-through selling pressure has the potential to continue dragging the pair further towards 1.2930 intermediate support ahead of the 1.2900 round figure mark.
On the flip side, the key 1.30 psychological mark now seems to act as an immediate hurdle, above which a bout of short-covering could lift the pair further towards 1.3060 supply zone.
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