GBP/USD: finding an equilibrium in wide turbulent range
|GBP/USD is currently testing the 1.22 handle to the downside within a bearish trend from last week's supply at the highs scored on the 19th at 1.2332.
GBP/USD could now be entering an equilibrium having both rallied depreciated dramatically in the flash crash earlier this month. The UK economy is surprisingly robust to some and has proven resilient to the negativity spouted by the expert economists pre and post referendum where the public voted to leave the EU - a black swan event that sent sterling off a cliff.
The UK High Court will allow parliament to vote on the details for any exit agreement with the EU which has dampened PM May's hard-line and hard Brexit rhetoric which in turn offers support to the pound. However, Article 50 should still get triggered by March and parliament cannot block this and thus uncertainty for the medium to longer term leaves the pound fragile and exposed.
GBPUSD levels
GBP/USD has a key support at 1.2170 within the wider technical picture that suggests a new turbulent 1.21-1.28 range. 1.20 is the key psychological level to the downside. Spot is below the 1hr 200 sma at 1.2230 as immediate resistance ahead of 1.2270/80 ahead of 1.2332.
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