GBP/USD: Sharp intraday slump to 1-week low finds some support near mid-1.3100s

   •  May’s confirmation for a short delay until June 30 prompts some aggressive selling.
   •  Technical selling below 1.3200 handle/200-hour SMA further aggravates the momentum.

The bearish pressure surrounding the British Pound picked up the pace in the last hour, with the GBP/USD pair tumbling to mid-1.3100s or one-week lows.

The market reaction to the UK PM Theresa May's confirmation that she requested for a short Brexit extension until June 30 (contrary to the market expectations for a long delay) turned out to be rather brutal and acted a key trigger for the pair's sudden fall over the past hour or so.

Adding to this, the European Commission President Jean-Claude Juncker's warning against extension beyond May 23 further, though didn't look like a piece of negative news, further dented the already weaker sentiment and aggravated the bearish pressure around the major.

The pair took along some aggressive short-term trading stops being placed near the 1.3200 handle, and 200-hour SMA, which further collaborated towards accelerating the downward momentum to an intraday low level of 1.3146, or fresh weekly lows.

Given the sharp intraday slump, bearish traders took some breather, at least for the time being, amid highly oversold conditions on hourly chart and now look forward to the latest FOMC monetary policy update for some meaningful impetus.

Technical levels to watch