GBP/USD slides further below 1.2900 on stronger US Dollar

• US Dollar Index rises further during the American session, extends the rebound from weekly lows. 
• UK Parliament votes for the new Speaker while Lagarde gives her first speech as ECB president. 

The GBP/USD pair dropped further under 1.2900 and printed a fresh daily low at 1.2875. Near the end of the session holds around the lows with the bearish tone intact. 

The move lower late in New York took place amid a stronger US Dollar across the board. The DXY is 0.35%, having the best performance in a month. It climbed back above 97.50 as it recovers further after posting on Friday the lowest close in three months. The rally of the Greenback is being supported by higher US yields. The 10-year climbed toward the 1.80% area after trading under 1.70% on Friday. 

The Greenback strengthened despite mixed US data. In the United Kingdom, the Parliament is set to elect a new Speaker. In Berlin, the new European Central Bank President Christine Lagarde made no reference to monetary policy in her first public speech. 

Levels to watch

The GBP/USD holds a bearish tone ahead of the Asian session. The next support might be seen at 1.2855, followed by 1.2840, and then attention would turn to the 1.2800/05 area that capped the downside last week. A break lower would clear the way to more losses. On the upside, now 1.2905 is the immediate resistance and then comes 1.2945 (Nov 4 high) and 1.2975 (last week high).