Having surged to monthly tops near 1.2435 region, the GBP/USD pair witnessing a sharp reversal and refreshing daily low near 1.2365 region.
Spot ran through fresh offers and accelerated the reversal move on Brexit news that the UK Prime Minister Theresa May would enact Article 50 next Wednesday, i.e. March 29th.
The pair's sharp retracement in the past hour or so could also be attributed to a modest greenback recovery. In fact, the key US Dollar Index has now reversed all of its early losses to multi-week lows and further aggravated the selling pressure around the major.
However, last week's hawkish BoE twist continues to underpin the British Pound demand and seems to have collaborated towards limiting further downslide, with the pair quickly bounced off few pips lows to currently trading around 1.2380-85 region.
Later during NY trading session, speeches from the Chicago Fed President Charles Evans and BOE Chief Economist, also MPC voting member, Andy Haldane would now be looked upon for some fresh impetus.
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet notes, "the pair has stalled its advance a few pips above a major Fibonacci resistance, at 1.2425, still the main resistance as a clear break above it is required to confirm further gains towards 1.2470. Above this last, 1.2510 comes next. The immediate support is 1.2380 followed by 1.2345."
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