GBP/USD plunges below 1.3100 handle to fresh 31-year low

The post-Brexit global risk-aversion make a remarkable comeback with the GBP/USD pair sinking below 1.3100 handle to touch its weakest level since 1985. 

After a few days of relatively calm trading session, the pair resumed with strong downward trajectory and dropped to 1.3055 region before retracing few pips to currently trade around 1.3070-75 band. 

The initial leg of Tuesday's weakness was triggered by lower-than-expected UK services PMI print for the month of June that pointed towards Brexit-led economic fallout for the UK economy. Adding to the bearish sentiment, BoE Governor Mark Carney reiterated the central bank's readiness to ease further, if required, that trigger a fresh bout of selling pressure around the GBP/USD pair.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "the 1 hour chart shows that the price is below a modestly bearish 20 SMA, whilst the RSI indicator resumed its decline within oversold territory, and the Momentum indicator extended below its 100 level, all of which supports some further slides. In the 4 hours chart, technical readings also support further slides, with the RSI indicator accelerating its decline within oversold levels, and the 20 SMA gaining bearish strength well above the current level." 

"Support levels: 1.3090 1.3050 1.3000
Resistance levels: 1.3150 1.3185 1.3220"