GBP/USD is trading at session lows around 1.2950 levels
Part of the move is being driven by pound selling in GBP/JPY as the yen gathers some strength on the session as risk tones continue to sour. But that has also pushed cable lower to touch a session low of 1.2654, closing in on near-term support around 1.2647-50.
As mentioned earlier, a break below that will open up the path towards support and bids around 1.2600-06 before we start looking towards a potential move 1.2500.
There isn't much reprieve for the pound at the moment as UK political uncertainty continues to drag out and will prevail over the next few weeks at the very least. As the crucial part of the Tory leadership contest is only set to begin after 13 June, there isn't much to really change the current perception so perhaps that could help the pound see some reprieve.
However, any short-term relief or recovery will prove to be brief as there is still much Brexit and UK political uncertainty that will continue to weigh on the currency until this mess is sorted out before the end of July.
