GBP/USD around 1.3400 on Brexit hangover

The sterling is intensifying its losses at the beginning of the week, now sending GBP/USD to trade around the 1.3400 handle.

GBP/USD depressed on ‘Brexit’

The pair is extending its drop in the aftermath of the ‘Brexit’ vote last Thursday, trading in the area of 3-decades lows in the 1.3400 neighbourhood.

The sentiment around GBP has worsened over the weekend as market participants continue to assess the political and economic implications of the ‘Leave’ win at last week’s referendum.

Attention has now turned to today’s meeting between Merkel, Renzi, Hollande and Tusk, and the likeliness of the UK to invoke Article 50.

GBP/USD levels to consider

As of writing the pair is losing 2.08% at 1.3395 and a break below 1.3224 (post-Brexit low Jun.24) would open the door for 1.3000 (psychological level). On the other hand, the immediate hurdle lines up at 1.3833 (previous 2016 low Feb.29) followed by 1.4004 (low Apr.6) and then 1.4308 (20-day sma).