GBP / USD falls to lows of more than three weeks on fear of a no-deal Brexit

• GBP / USD is witnessing some new selling amid growing chances of a no-deal Brexit.
• British Prime Minister Johnson had warned of the potential for trade talks between the UK and the EU to fail.
• Von der Leyen said he has low expectations that a Brexit deal can be reached.

The pair GBP / USD has fallen around 140 pips at the start of the European session on Friday and has fallen to new lows of more than three weeks, around the 1.3185 region. At the time of writing, the pair is recovering slightly towards the 1.3220 region, still losing around 100 pips from the daily highs and keeping the bearish pressure intact.

The pair has failed to capitalize on its recovery attempt and found new sales near the region of 1.3325, slipping into negative territory for the second day in a row on Friday. The latest sudden drop is due to not-so-optimistic news related to Brexit.

The President of the European Commission, Ursula von der Leyen has told EU leaders that she has little expectation that the EU can reach a Brexit deal with the UK. This comes a day after UK Prime Minister Boris Johnson warned that there was a strong possibility that the UK and the EU would fail to reach an agreement.

This, in turn, has further reduced the prospects for a post-Brexit trade deal, which has been seen as a key factor affecting the British pound. It is worth remembering that a key summit between von der Leyen and Johnson earlier this week ended without any apparent progress and officials said the two sides remain widely separated on key issues.

With the last move down, the pair GBP / USD now appears to have confirmed a new breakout and appears vulnerable to further extending its decline. That said, bears could refrain from opening aggressive positions and await the outcome of post-Brexit trade talks. Negotiators still have until the end of the week to reach a compromise agreement.

GBP / USD technical levels