GBP/USD: Post-NFP downside bias intact, tests 1.2250

The GBP/USD pair is seen consolidating the sharp-selloff witnessed on Friday, and looks vulnerable amid resurgent USD buying across the board.

GBP/USD eyes 1.2200

The cable meanders near lows, as the bears gather pace for the next move lower amid rallying treasury yields, which dull the GBP’s appeal as an alternative higher yielding asset. The treasury yields extend the rally as expectations of a March rate hike jump, following a rise in wages reflected in the US labor markets report published last Friday.

Moreover, a fresh bout of buying interest seen behind the greenback against its main competitors, also fuel renewed weakness seen behind GBP/USD. Looking ahead, the UK docket remains absolutely data-empty today, and hence, focus remains on the US LMCI data due to be reported in the NA session.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2281 (daily R2), 1.2300 (10-DMA) and 1.2356 (Jan 4 high). While supports are seen at 1.2217 (Jan 4 low) and 1.2198 (multi-week lows) and below that at 1.2141 (Oct-end low).