GBP/USD drops further to fresh 1-month lows

GBP/USD accelerated lower over the last hours after breaking below the 1.3100 level, accumulating a 200-pip loss so far today.

The pound continues to suffer after the BoE left the door open to further easing at its meeting yesterday, while the dollar is outperforming amid higher-than-expected CPI data. This combo has sent Cable to a low of 1.3035, last seen Aug 19.

At time of writing, GBP/USD is trading at the 1.3040 zone, down 1.48% on the day and headed for its second weekly loss in a row.

Amid fundamental news, all EU leaders but UK May are meeting in Bratislava to discuss post-Brexit future, while headlines suggest UK Chancellor Philip Hammond is ready to abandon total access to the EU in negotiations.

GBP/USD levels to watch

As for technical levels, immediate supports are seen at 1.3022 (Aug 19 low), 1.3000 (psychological level) and 1.2978 (Aug 17 low). On the other hand, resistances could be found at 1.3274 (10-day SMA),  1.3346 (Sep 12 high) and 1.3374 (Sep 8 high).