GBP/USD tumbles to 1.2900 handle, fresh 11-month lows

   •  Brexit uncertainties continue to weigh on the British Pound.
   •  A modest USD rebound prompts some aggressive selling.

After an initial uptick to 1.2960 level, the GBP/USD pair met with some fresh supply and dropped to fresh eleven-month lows in the last hour.

The pair's decline from the Asian session highs could be attributed to a modest US Dollar rebound, which got an additional boost following comments by China's Foreign Ministry about the US sanctions on Iran. According to the latest headlines floating on the wires, China's Foreign Ministry said that it opposes unilateral US sanctions on Iran and its commercial cooperation with Iran is open, transparent and lawful. 

Against the backdrop of growing prospect for a no-deal Brexit, which has kept the GBP bulls on the back-foot since the beginning of this week, the comments supported some safe-haven flows and turned out to be one of the key factors prompting some aggressive selling around the major.

Meanwhile, the latest leg of sharp decline over the past hour or so could also be attributed to some technical selling below the 1.2925-20 region, previous YTD lows. A follow-through weakness through the 1.2900 handle might now pave the way for an extension of the pair's near-term bearish trajectory amid absent market moving economic releases, either from the UK or from the US.

Technical levels to watch

The ongoing momentum seems strong enough to continue dragging the pair further towards 1.2865 support area, which if broken would mark a fresh bearish breakdown. On the flip side, any recovery attempts back above 1.2930-35 area now seem to confront fresh supply near the 1.2960-70 region and is followed by weekly highs resistance near the key 1.30 psychological mark.