GBP/USD: A phase of bearish consolidation amid USD recovery

The GBP/USD pair extended its downside consolidative mode into mid-Asia, now moving away from session lows struck at 1.2140 in early-Tokyo trades.

GBP/USD: Brexit continues to weigh

The cable struggles hard to regain the bids, but in vain, as sellers keep lurking as a Hard-Brexit related concerns continue to persist, while markets gear up for the UK PM May’s speech on Brexit guidelines and Supreme Court hearing on triggering Article 50, which is expected to expose sharper declines for the GBP going forward.

Goldman Sachs on GBP: Risks tilted in direction of a sharper decline on Article 50 trigger

Moreover, the US dollar regains poise against its major peers in wake of hawkish remarks by Fed’s Harker and upbeat jobless claims data, which also keeps the selling pressure intact on the major. While Fed Chair Yellen’s comments had little impact on the markets, as she refrained from commenting on the monetary policy program.

Attention now turns towards the BOE Credit conditions survey and MPC member Saunders speech scheduled ahead of the US retail sales, PPI and consumer sentiment data, which will be closely eyed for further moves on the USD.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2174 (5-DMA), 1.2210 (daily pivot) and 1.2239 (10-DMA). While supports are aligned at 1.2104 (Jan 10 low) and 1.2039 (post-Flash crash low) and below that at 1.2000 (key psychological support).