GBP/USD probes session lows near 1.2870

The Sterling is extending its weekly decline so far on Tuesday, dragging GBP/USD to the area of daily lows near 1.2870.

GBP/USD softer on Brexit jitters, looks to May

Cable is retreating for the third session in a row so far today, prolonging the bearish note after being rejected from tops around 1.3030 in late June. Spot, however, seems to have found decent support so far in the 1.2860 region (Monday’s low), where also sits the 38.2% Fibo retracement of 1.2587-1.3032.

In addition, GBP stays under renewed pressure as Brexit concerns seem to have re-emerged among investors. The attention today should be on the speech by PM Theresa May (who is expected to call for some political consensus over Brexit) and also speeches by BoE’s A.Haldane and B.Broadbent.

Adding to the pair’s decline, the bid tone stays well and sound around the greenback, which has recently found extra support after Fed’s Williams said that another rate hike later in the year appears ‘reasonable’.

GBP/USD levels to consider

As of writing the pair is retreating 0.05% at 1.2875 facing the next support at 1.2858 (low Jul.10) followed by 1.2828 (21-day sma) and finally 1.2809 (50% Fibo of 1.2587-1.3032). On the upside, a breakout of 1.2927 (23.6% Fibo of 1.2587-1.3032) would open the door to 1.2937 (10-day sma) and then 1.3032 (high Jun.30).