GBP/USD struggle with 1.34 continues on Brexit aftershocks

Having dropped to lows near 1.3350 in early Asia, the GBP/USD pair is now seen making minor-recovery attempts in a bid to reclaim 1.34 handle and beyond as dust settles over Brexit aftermath.

GBP/USD deep in the red

Currently, GBP/USD now slumps -2.09% to 1.3394, striving hard to extend recovery above 1.34 handle. The cable is seen consolidating the bearish opening gap and the subsequent decline as the bears remain in complete control as markets continue to weigh the aftereffects of a Brexit outcome, with recession in the UK the most likely outcome in sight.

Moreover, a cautious environment still persists for the GBP traders on the back of growing uncertainty over the UK’s economic prospects going forward. In its latest report, Goldman Sachs lowered Britain’s GDP forecasts in light of deteriorating terms of trade and tightening financial conditions.

In the day ahead, the major is likely to remain pressured as Brexit woes still continue to weigh, while a quiet trading calendar will also keep Brexit-related news flow in the spotlight.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3431/50 (daily pivot), above which 1.3500 (round number) would be tested. On the flip side, support is seen at 1.3356 (daily low) below that at 1.3308 (daily S2).