GBP/USD plummets to 4-day lows, farther below 1.33 handle
• Renewed Brexit jitters prompt fresh selling.
• Technical factors aggravate bearish pressure below 1.33 mark.
• Bearish break below a short-term ascending trend-channel confirmed.
The selling pressure around the British Pound aggravated during the early NA session, with the GBP/USD pair tumbling to fresh session low near the 1.3270 region.
Against the backdrop of latest jitters over the Irish border, the BOE Governor Mark Carney's comments over the potential consequences of a disorderly Brexit prompted some fresh selling around the British Pound.
The pair struggled to build on an early uptick back closer to previous session's multi-week tops and subsequently dropped to 4-day lows, taking along some trading stops placed at the 1.3300 handle.
Hence, the latest leg of downslide could also be attributed to some follow-through technical selling/long-unwinding, especially after bulls failed to defend a short-term ascending trend-channel support.
Investors would now take cues from the New York Fed President William Dudley's scheduled speech, ahead of the Fed Chair Designate Jerome Powell's confirmation hearing and the release of US CB consumer confidence index.
Valeria Bednarik, American Chief Analyst at FXStreet writes, "the 4 hours chart shows that the pair is breaking below the base of the ascendant channel that's leading the way since November 14th, now around 1.3310. In the same chart, the price is extending below a now flat 20 SMA, while technical indicators entered bearish territory, although with limited strength downward. At this point, the pair would need to recover above 1.3335 to revert the short-term negative tone and gain some upward traction."