GBP/USD touches a low of 1.2954, lowest level since September 2017
Sellers take out the previous year's low @ 1.2958 and now the real test begins for cable. A hold below is very much a slippery slope for the pair with little support seen until the 1.2930 region with the 1.2900 figure level being another key point of interest.
At the same time, GBP/JPY also continues to tumble as it falls to a low of 144.09.
So, what's next for sterling?
The main focus now will slowly shift towards Brexit and whether or not we will see a hard Brexit aka no-deal Brexit outcome. UK trade minister Liam Fox highlighted that a no-deal Brexit is the most likely outcome now and though EU officials are reported to try and prevent that, traders are erring to the side of caution it would seem.
Couple that with the poorer sentiment following Mark Carney's comments after the BOE meeting last week, it's been a steady track lower for sterling over the last few days.
However, given Carney's comments, we can expect the BOE to take more of a backseat for the time being as no rate hikes will be on the cards in the near future - or at least that is what is to be expected now.
So, all eyes will turn towards Theresa May's negotiation with parliament as well as that with Brussels.
Right now, there isn't much optimism for a soft Brexit as those negotiating are aiming towards a less hard Brexit outcome if anything else. But unless they are able to put anything concrete on the table, chances are growing that a less favourable outcome for sterling will materialise in due time.
