GBP/USD falls to session lows, just below 1.2700 handle
• Cabinet ministers called for an emergency conference with PM in the next half hour.
• Speculations that May will delay the meaningful vote prompt some GBP selling.
The GBP/USD pair extended its sharp intraday retracement slide, with bears now eyeing a follow-through selling below the 1.2700 handle.
The pair did get a minor lift and climbed to an intraday high level of 1.2760 in reaction to the official ECJ ruling on Article 50, confirming that the UK can unilaterally revoke Brexit notification of its intention to withdraw from the EU.
The uptick was quickly sold into after the UK government clarified its stance that it has no plan to revoke Article 50. The downfall accelerated further following today's disappointing release of the UK manufacturing production data.
Meanwhile, the GBP bulls seemed largely unimpressed by today's mostly in line UK monthly GDP growth figures, with the latest UK political headlines exerting some fresh downward pressure on the British Pound and the major.
The UK Cabinet ministers have been called for an emergency conference with the PM and speculations that May will delay the meaningful vote on Brexit turned out to be one of the key factors behind the pair's latest leg of a sudden fall in the last hour.
It would now be interesting to see if the pair is able to find any support at lower levels or continues with its downfall back towards retesting yearly lows as the focus remains on the incoming UK political/Brexit headlines ahead of Tuesday’s crucial parliamentary vote.
Technical levels to watch
A follow-through selling has the potential to continue dragging the pair further towards yearly lows, around the 1.2660 region, en-route the next major support near the 1.2600 round figure mark. On the flip side, the 1.2730-35 region now seems to act as an immediate resistance, which is followed by resistance near the 1.2760-70 zone and the 1.2800 handle.