GBP/USD: Bulls struggle with 1.2250 as risk-off seeps back

The GBP/USD pair is seen surrendering minor-bids, despite broad based US dollar weakness, as sentiment sours amid renewed geo-political concerns.

GBP/USD: 1.2225 back on sight?

The overnight recovery in GBP/USD lost steam over the last hour, as a renewed risk-aversion wave gripped the markets after the US deployed THAAD missile in South Korea amid continued provocative actions by North Korea, which includes yesterday's launch of multiple missiles.

Moreover, further upside appears limited amid a lack of fresh fundamental drivers due on the cards from both the UK and US. Hence, attention shifts towards the UK Annual Budget release due tomorrow for next direction on the spot.

GBP/USD Levels to consider            

At 1.2242, the resistances are lined up at 1.2304/05 (previous high/ Fib R2) and 1.2333/50 (10-DMA/ round figure) and below that at 1.2400/09 (zero figure/ 50-DMA). On the flip side, the resistances are aligned at 1.2224 (previous low) and 1.2212 (6-week low) and below that at 1.2198/97 (Jan 1/ Dec 25 low).