GBP/USD start of week hard Brexit talk volatility, back on the 1.20 handle

GBP/USD is back above the psychological 1.2000 after a bearish opening gap that took the pound down over 200 pips vs the greenback at the start of a week when markets are awaiting PM to make a keynote speech regarding plans for Brexit.

The news over the weekend has hyped up the event to be a hard Brexit rhetoric which has investors scrambling for short sterling positions. The pound made a low of 1.1989, a good way off the flash crash recorded lows of $1.1841 when the pound crashed in the same time zone when it dropped more than 6 percent in the space of two minutes on Oct. 7. Meanwhile, the price still has some way to go to close the bearish gap to 1.2187.

EUR/GBP bulls remain in charge on bullish hard-Brexit opening gap

GBP/USD levels

Previously, analysts at Commerzbank explained that failure 1.2085 was a major level, thus should the price remain below here, the scope is for a continuation of the downside where the analysts marked out 1.1775 and then 1.1481 the recent spike low as key downside targets.

"Intraday rallies are indicated towards 1.2200, where they should start to struggle. Long term trend (1-3 months): Made an interim low at 1.1938 below which lies the 1.1855 May 1985 low."