GBP/USD falls to fresh 15-day lows near 1.2750 as markets nervously wait for PM May's presser

• British pound suffers heavy losses on ongoing political drama in the UK.
• PM Theresa May is scheduled to appear in a press conference at 17:00 GMT.
• GBP/USD loses more than 200 pips on the day.

After British Brexit Secretary Dominic Raab announced his resignation earlier in the day, the GBP/USD pair fell sharply as concerns over a possible challenge against Prime Minister Theresa May leadership didn't allow the British pound to find demand. As of writing, the pair was trading at 1.2757, losing 235 pips, or 1.8%, on a daily basis.

After the Vice Chairman of the British Conservative Party, Raymond Chishti, announced his resignation, news outlets reported that PM May will appear in a press conference at 17:00 GMT. "The terms of the backstop, in effect, amount in my view to a hybrid membership of the EU Customs Union and Single market and further the EU would hold a veto over our ability to exit," Chishti said in a letter to PM May. On other political developments, Michael Gove, who was offered the role of the new Brexit Secretary, said he would only consider the offer if he was allowed to renegotiate the deal. 

In an interview with Real Vision, "There does not appear to have been a great deal of preparation by the British government by the May government in case there is no deal, in case there is no Brexit and they just fall out drifting down from the EU heights. Part of that may actually be a negotiating tactic by the [May] government for their own doubters within their party. Because if there is no alternative if nothing has been prepared then it is a great deal riskier to deny the agreement," Senior FXStreet Analyst Joseph Trevisani said today.

Meanwhile, today's data from the U.S. showed that retail sales increased more than expected in October and helped the US Dollar Index continue to float in the positive territory. At the moment, the index is up 0.15% on the day at 9.15. 

Technical levels to consider

The initial support for the pair aligns at 1.2700 (Oct 30/31 low) ahead of 1.2640 (Jun.12, 2017, low) and 1.2590 (Jun. 21, 2017, low). On the upside, resistances are located at 1.2920 (20-DMA), 1.3000 (psychological level) and 1.3070 (Nov. 14 high).