GBP/USD breaks below 1.2200 to print session lows

The Sterling is now following the selling mood in the rest of the risk-associated space, dragging GBP/USD to fresh daily lows in sub-1.2200 levels.

GBP/USD weaker ahead of US data

The pair is retreating after two consecutive advances so far this week, as the greenback seems to have resumed its briefly interrupted rally.

In fact, the US Dollar Index is now picking up pace ahead of the opening bell in the Old Continent, recovering part of yesterday’s significant pullback from fresh 7-month tops beyond 98.00 the figure.

In the meantime, recent comments by PM Theresa May have alleviated concerns over the likeliness of a ‘hard Brexit’ scenario, bringing in some relief for GBP and prompting spot to attempt a bull run to levels above the 1.2300 handle earlier in the week.

GBP/USD levels to consider

As of writing the pair is losing 0.45% at 1.2199 and a break below 1.2086 (low Oct.11) would expose 1.1450 (low post-‘flash crash’ Oct.7). On the other hand, the next resistance aligns at 1.2761 (high pre-‘flash crash’ Oct.7) followed by 1.2729 (20-day sma) and then 1.2860 (near term resistance line).