GBP/USD plunges into new lows as losses accelerate

• GBP/USD tumbled below 1.3100 on Tuesday, making a clean downside break.
• Bearish pressure is mounting as Cable traders jump ship ahead of the BoE's latest interest rate decision.
• Market sentiment is drawing safe-haven flows back into the US Dollar, pummeling the Pound Sterling.

GBP/USD fell further on Tuesday, making a clean downside break of the 1.3100 handle and shedding around 0.9% over a single day as Cable losses continue to pile on. The Pound Sterling (GBP) has closed flat or down against the US Dollar (USD) for all but two of the last 12 consecutive trading sessions as GBP/USD races toward a third straight week of one-sided declines.

Little of note lies on the UK side of this week's data docket until the BoE's upcoming interest rate decision on Thursday. Even here, little change is expected. The Monetary Policy Committee (MPC) is expected to vote six-to-three to keep interest rates unchanged. The addition of another rate cut vote will be of some note for particularly attentive central bank policy wonks; however, meaningful changes in the BoE's interest rate stance are unlikely to materialize with the UK's headline inflation rate standing at 3.8% as of August, nearly double the BoE's preferred 2% target band.

US ADP Employment Change figures for October are due on Wednesday. ADP numbers have a historically disastrous correlation to actual official datasets from one release to the next, but that is unlikely to stop investors from placing additional importance on the volatile month-to-month ADP figure while the ongoing US government shutdown shuts off the flow of more meaningful sample estimates such as the Nonfarm Payrolls (NFP) jobs report.

GBP/USD daily chart