GBP/USD extends losses and drops below 1.2700 as May speaks ahead of Brexit “meaningful vote”

• GBP/USD drops further as the pound tumbles across the board. 
• Brexit deal being debated at the Parliament, vote on the deal expected around 20:00 GMT. May is speaking at Parliament.
• The pound weakened sharply across the board and reversed from weekly highs. 

The GBP/USD pair dropped further and bottomed at 1.2694, the lowest since January 4. The last leg lower took place as PM May’s speaks at the Parliament. 

As of writing trades at 1.2700/10, under pressure and with the negative tone intact and uncertainty increasing. 

Volatility is likely to remain high ahead of the vote on UK PM May’s Brexit deal at the Parliament. Lawmakers are expected to reject the deal. If a large majority votes against it, it could delay or create the conditions for a “hard” Brexit. Also, the opposition Labour Party will likely call a vote of no confidence.

GBP/USD Levels to watch 

To the downside, support levels might be located at 1.2675/80, followed by 1.2645 (Jan 3 high) and 1.2615 (Dec 27 & Jan 4 low). On the upside, resistance levels could now be seen at 1.2735, 1.2800/05 (Jan 9 high) and 1.2865 (Jan 11 high).