GBP/USD: Slumps over -3%, Brexit-lows tested

The offered tone behind the GPB keeps growing bigger as we head into the mid-European session, pushing GBP/USD further south in an attempt to retest Brexit-lows struck near 1.3220 region last Friday.

GBP/USD sold-off into increasing Brexit concerns

Currently, GBP/USD plunges -3.17% to 1.3247, quickly bouncing-off a dip near three-decade lows reached last Friday at 1.3218. The cable extended its downward spiral, plummeting in tandem with the UK gilt yields as Brexit woes accentuate amid more Labour Party MPs threatening to resign, triggering renewed wave of risk-aversion across the global financial markets.

Meanwhile, yields on the 10-year government debt of the UK fell to all-time lows of 0.934%, diving below 1% for the first time ever, down almost 13% on the day. The major is likely to remain under pressure in response to the Brexit angst as Brexit-related headlines keep flooding the markets.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3431/50 (daily pivot), above which 1.3475/1.35500 (daily high/ round number) would be tested. On the flip side, support is seen at 1.3218 (Brexit low) below that at 1.3150 (30-year lows).