GBP/USD weakest since Oct-end, 1.21 tested

The GBP/USD pair took a sharp U-turn after a solid rebound to 1.2180 levels, now eyeing a test of 1.21 handle amid ongoing broad based US dollar recovery and negative European equities.

GBP/USD: Brexit continues to weigh

The cable is seen making minor-recovery attempts on 1.21 handle, but trades with moderate losses as Hard-Brexit concerns continue to weigh on the investors’ sentiment.

Moreover, sustained broad based recovery in the US dollar after the Asian sell-off, also keeps the bearish pressure intact on the GBP/USD pair. Additionally, persisting risk-off trades also collaborates to the downbeat sentiment around the higher-yielding currency, GBP.   

The major will continue to take cues from the USD price-action in absence of significant fundamental drivers from the UK docket. While the US JOLTS job openings data will fill in an otherwise data-light NA session.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2200 (round figure), 1.2250 (5-DMA) and 1.2290 (20-DMA). While supports are seen at 1.2100 (multi-week lows) and 1.2050 (psychological levels) and below that at 1.2000 (key support).