GBP/USD approaching yesterday's low in pre-London slide

• GBP/USD trading lower heading into London.
• Brexit continues to hang over the UK.

The Sterling is still lower heading into the Europe session, currently trading just below 1.3980.

Brexit woes are continuing to pile up for the GBP, as a recent report noted that the UK has privately discussed the option of developing a contingency plan if anything goes wrong with UK-EU Brexit negotiations. This report is poorly timed, as the UK is also dealing with the fallout from weekend comments from the European (EU) Parliament’s Chief Brexit coordinator Guy Verhofstadt, who admitted that there will not be a finalized trade deal in place by the time Brexit day finally arrives.

GBP/USD Technicals

The Sterling has declined against the Greenback for two straight trading days, yet bullish prospects remain high, with the 34 EMA still acting as support from 1.3880. Near-term action will need to either fall below the recent swing low at 1.3762 to establish a bearish breakdown, or to clear the last swing high at 1.4344 to establish a return to the bullish trend.