GBP/USD hammered down to mid-1.2100s in reaction to latest Brexit headlines

Haresh Menghani FXStreet

The GBP/USD pair lost over 100-pips during the early European session on Wednesday and extended its sharp intraday pullback farther below the 1.2200 round figure mark.

The British Pound witnessed some aggressive selling on news reports that the UK government has already initiated plans to delay parliamentary proceedings for about five weeks - extending the recess period to 14 October, paralyzing any attempt by the opposition parties to preemptively block a no-deal Brexit by legislation.

Apart from the latest Brexit-related headlines, the pair was further pressurized by a modest pickup in the US Dollar demand. Despite deepening of the US yield curve inversion, the greenback remained supported by the US President Donald Trump's softer tone against China on Tuesday and collaborated to the pair's heavily offered tone.

Meanwhile, possibilities of some short-term trading stops being triggered on a sustained break below the 1.2200 handle further aggravated the intraday bearish pressure. Hence, a follow-through weakness, led by some fresh technical selling and amid absent relevant market-moving economic releases, now looks a distinct possibility.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2228
Today Daily Change	-0.0062
Today Daily Change %	-0.50
Today daily open	1.229

Trends
Daily SMA20	1.2148
Daily SMA50	1.2381
Daily SMA100	1.2613
Daily SMA200	1.2774

Levels
Previous Daily High	1.231
Previous Daily Low	1.2209
Previous Weekly High	1.2294
Previous Weekly Low	1.2064
Previous Monthly High	1.2706
Previous Monthly Low	1.2119
Daily Fibonacci 38.2%	1.2271
Daily Fibonacci 61.8%	1.2248
Daily Pivot Point S1	1.2229
Daily Pivot Point S2	1.2169
Daily Pivot Point S3	1.2128
Daily Pivot Point R1	1.233
Daily Pivot Point R2	1.2371
Daily Pivot Point R3	1.2431

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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