GBP/USD breaches 1.3100 as May warns over a ‘no deal’

• Cable accelerates the downside on May’s comments.
• The pair breaks below the 1.3100 support, down over 1%.
• PM May’s warns on a potential ‘no deal’ scenario.

Sellers are now queuing to dump long Sterling positions, forcing GBP/USD to drop below 1.3100 the figure, fresh 4-day lows.

GBP/USD collapses below 1.3100

Cable is shedding more than 1% for the day after testing the 1.3300 neighbourhood on Thursday, always against the backdrop of rising hopes on a Brexit deal.

However, all those hopes quickly evaporated today after PM Theresa May warned over the likelihood of a ‘no deal’ in the Brexit negotiations.

May also noted that both parties are now in an impasse and stressed that anything that does not respect the referendum result is unacceptable.

In the meantime, Cable keeps falling and is now challenging the top of the daily cloud around 1.3090… after testing 1.3300 yesterday.

GBP/USD levels to consider

As of writing, the pair is losing 1.32% at 1.3087 facing the next support at 1.3009 (21-day SMA) seconded by 1.2785 (low Sep.5) and finally 1.2662 (low Aug.15). On the upside, a breakout of 1.3299 (high Sep.20) would aim for 1.3364 (high Jul.9) and finally 1.3520 (200-day SMA).