The British pound sterling is posting steep losses on Monday.
The declines come amid threats of new tougher lockdown measures in the United Kingdom. The one day implied volatility is once again pushing higher.
After trading near the highs, Monday’s bearish close could confirm the downside. This would potentially open the way for the GBPUSD to test the 1.3500 level of support.
As long as this support holds, it remains within the long term uptrend. However, the GBPUSD will need to post higher highs to confirm this.
Failure near the 1.3500 could open the way for the GBPUSD to extend declines lower to the 1.300 level.