GBP/USD: Recovery from Hard-Brexit sell-off stalls at 1.2085

Dhwani Mehta FXStreet

The GBP/USD pair attempts yet another bounce beyond 1.20 handle, after the major reversed a brief dip to almost four-month lows struck at 1.1988 just ahead of the European open.

GBP/USD capped near daily R2 at 1.2083

The cable is seen meeting fresh supply on every attempt to fill in the bearish opening gap, on increased expectations that Tuesday’s speech by the UK PM May will signal a Hard-Brexit, as she remains on track to invoke the Article 50 by the end of March.

Further, any bounce in the GBP/USD pair may remain short-lived as markets remain unnerved also ahead of this week’s UK Supreme Court hearing on the Article 50 challenge, which the government is widely expected to lose.

Later today, the two-way trades in the major may be exaggerated in light of thin volumes as the US markets are closed on account of a National Holiday.

GBP/USD Levels to consider

In terms of technical levels, upside barriers are lined up at 1.2083/ 85 (daily R1/ high), 1.2100 (zero figure) and 1.2125 (5-DMA). While supports are aligned at 1.1988 (multi-week low) and 1.1850 (post-Flash crash low) and below that at 1.1800 (key psychological support).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.2170

36% Bullish
43% Bearish
21% Sideways

Bias Bearish

1 Month

Avg Forecast 1.2115

25% Bullish
50% Bearish
25% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.2081

30% Bullish
35% Bearish
35% Sideways

Bias Bearish

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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