GBP/USD plummets to fresh one-month lows, around mid-1.3000s ahead of NFP

The selling pressure around the British Pound remained unabated, now pushing the GBP/USD pair to fresh one-month lows, in the region of mid-1.3000s.

The pair remained under intense selling pressure on the last trading day of the week and remains on track for third consecutive week of losses, reversing over 600-pips from yearly tops touched in the aftermath of hawkish BoE announcement in September. 

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Against the backdrop of persistent uncertainty surrounding Brexit talks, the latest political development in the UK further dampened sentiment surrounding the British Pound. 

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Meanwhile, the incoming stronger US economic data, combined with the hawkish rhetoric from various FOMC members has been reinforcing December Fed rate hike expectations. Adding to this, hopes for progress on the US tax reforms provided an additional boost to the recent US Dollar rally and further collaborated to the pair's downfall to the lowest level since September 7.

It would now be interesting to see if bears remain in control and continue dragging the pair, closer to the key 1.30 psychological mark, amid some repositioning trade ahead of the keenly watched NFP report.

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Heading into today's key event risk, a scheduled speech by BOE Chief Economist Andy Haldane would be looked upon for some immediate respite for the GBP bulls. 

Technical levels to watch

Immediate support is pegged near 1.3030 level, below which the pair is likely to slide towards the 1.30 handle before eventually dropping to test its next major support near the 1.2965-60 region.

On the upside, recovery attempts above 1.3075 level might confront fresh supply near the 1.3100 handle and any subsequent up-move beyond the mentioned hurdles now seems to be capped at 1.3130 area.