GBP/USD plummets to 3-1/2 week lows, momentarily slips below 1.38 handle

   •  GBP continues to be weighed down by softer UK data.
   •  Barnier’s Brexit comments add to the downward pressure.
   •  Technical selling below 1.3835 accelerates the downfall. 

The British Pound continued losing ground across the board, dragging the GBP/USD pair to 3-1/2 week lows and momentarily below the 1.3800 handle.

Against the backdrop of today's disappointing UK industrial production/trade balance data, renewed pickup in the US Dollar demand, supported by another wave of a selloff in European equity markets, continued exerting some downward pressure on the major. 

The already weaker sentiment surrounding the British Pound deteriorated further after the EU's chief Brexit negotiator Michel Barnier raised skepticism over the Brexit transition period.

Adding to this, possibilities of some short-term trading stops being triggered below the 1.3840-35 strong horizontal support seems to have further aggravated the long-unwinding pressure on the last trading day of the week. 

Technical levels to watch

A follow-through selling pressure has the potential to continue dragging the pair further towards 1.3725 intermediate support en-route the 1.3700 handle. 

On the upside, the 1.3835-40 region now becomes immediate resistance, above which the pair could aim back towards reclaiming the 1.3900 round figure mark.