GBP/USD turns negative below 1.2800 on Brexit headlines

• Cable tumbles to daily lows in sub-1.2800 levels.
• Brexit woes continue to weigh on the British Pound.
• UK’s PM T.May talked down extending the ‘transition period’.

GBP/USD faded the initial optimism and drops to fresh lows in sub-1.2800 levels at the beginning of the week.

GBP/USD weaker on Brexit headlines

Cable is reverting part of Friday’s advance although it remains under pressure after UK’s PM Theresa May stayed skeptical on the possibility of extending the ‘transition period’. In this regard, EU’s Barnier said the ‘transition period’ could be extended to December 2022.

In the meantime, the Sterling continues to suffer the omnipresent volatility around the Brexit deal (or no deal), exacerbated by the ongoing uncertainty surrounding May’s government (or no government).

Later in the week, the BoE’s Inflation Report Hearings is due tomorrow along with a speech by Governor M.Carney, while MPC Saunders is also due to speak on Thursday.

GBP/USD levels to consider

As of writing, the pair is losing 0.16% at 1.2814 and a breakdown of 1.2797 (low Nov.19) would open the door to 1.2724 (low Nov.15) and finally 1.2692 (low Oct.30). On the upside, the next hurdle is located at 1.2918 (21-day SMA) seconded by 1.2951 (10-day SMA) and then 1.3074 (high Nov.14).