GBP/USD erodes 50-pips rapidly to test 1.2830 on fresh Brexit jitters

• Fresh Brexit headlines knocks-off the GBP, with bears now eyeing 1.2800.
• Sold-off into the “rub-off” effect from weak German and Eurozone PMIs.

The GBP/USD pair came under aggressive selling pressure last hour and wiped-off almost 50-pips to now trade near 1.2831 daily lows, as fresh Brexit-related headlines poured cold water on the recent Brexit deal optimism.

The latest comments by the former UK Brexit Secretary Raab, citing the British parliament will vote the UK PM Theresa May’s Brexit deal, triggered a fresh selling-wave around the pound, dragging the spot sharply lower from near the 1.2885 region.

Moreover, the traders took the latest news on the Gibraltar-Spanish agreement with a pinch of salt that prompted the sellers to take back charge, as all eyes are set on the EU’s Brexit Summit scheduled this Sunday.

Meanwhile, the oil-price sell-off keeps the bounce in the resource-heavy UK’s FTSE 100 index limited, eventually adding to the weight on the sterling. Looking ahead, the Brexit-related headlines will continue to drive the GBP price-action until the release of the US Markit preliminary PMIs due later in the NA session.

GBP/USD Technical Levels