GBP/USD breaks above 1.2200; Article 50 back to the queue?

Currently, GBP/USD is trading at 1.2195, up +0.25% on the day, having posted a daily high at 1.2231 and low at 1.2120.

Unless PM May's agenda includes hiring a Tesla Time Machine (which does not exist), the timeline to invoke the infamous Article 50 is about to suffer a tricky, but legal delay. As expected, as soon as the information hit the wires, the British pound exploded more than 100-pips to the upside without further questions as to how delayed things can be or not in the Brexit saga. 

UK May's Article 50 plan set to be delayed due to a legal challenge - Independent

GBPUSD Technical Levels

After the short-term excitement, the pound may have a bottom in place waiting for further confirmation from politicians to recover its excessive losses. To the upside, if prices keep trading above water or 1.2210 figure, there is enough evidence to target the immediate resistance at 1.2280/90 zone. To the downside, 1.2120 is the support that keeps the dream alive. However, a close and open below this handle exposes the pound all they way down to 1.2050 and lower. 


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