GBP/USD erodes 100-pips, reverts to 1.2200

The retreat in the GBP/USD pair from above 1.23 handle accelerates post-European open, knocking-off the rate back towards 1.22 handle.

GBP/USD sees 1 big figure drop

The selling pressure behind the GBP intensifies in the European session, prompting renewed sell-off in GBP/USD as the GBP traders weigh the latest reports of UK PM May’s parliamentary vote acceptance on Brexit plans and its actual implications. The major is seen last exchanging hands at 1.2236 levels, now recording a +0.92% gain on the day.

While negative European equities combined with recent strength in the US dollar against its major rivals, further collaborates to the latest leg lower in the cable. Looking ahead, all eyes remain on the Brexit-related news flow ahead of the FOMC minutes due later in the NA session.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2325/27 (daily high/ 5-DMA), 1.2400 (round number) and 1.2486 (daily R2). While supports are lined up at 1.2195 (daily pivot) and 1.2106 (daily low) and below that at 1.2086 (Oct 11 low).