GBP/USD challenges 1.3500 on May, fresh lows

The Sterling is losing the grip on Friday and is now dragging GBP/USD to test daily lows in the 1.3500 neighbourhood.

GBP/USD weaker on May’s speech

Cable gained further downside pressure following the speech by PM Theresa May in Florence.

At her speech today, May hinted at the possibility that the UK could leave the EU before March 2019, while stressing that the UK aims to be a strong friend of the European Union.

May also said that the EU and the UK need to work together in areas like defence and security.

Regarding the critical issue of trade, PM May argued is in the UK interest to find a creative solution on trading relationship.

GBP/USD levels to consider

As of writing the pair is losing 0.60% at 1.3501 facing the immediate support at 1.3452 (low Sep.20) seconded by 1.3431 (10-day sma) and then 1.3198 (21-day sma). On the upside, a break above 1.3620 (2017 high Sep.18) would aim for 1.4010 (low Jun.16 2016) and finally 1.4744 (high May 26 2016).