The buying interest surrounding the British Pound gained pace as the UK PM Theresa May’s much awaited Brexit speech gets underway, helping the GBP/USD pair to move back above 1.2200 handle.
May's initial comments that Britain would not retain ‘partial’ EU membership and it’s government’s job to deliver a ‘clean Brexit’ triggered by end March sparked a sharp rally in the GBP/USD major. May also reconfirmed that Article 50 would be triggered by end of March and the process of ending Britain’s membership with the European Union would be completed by March 2019.
Meanwhile, persistent US Dollar selling pressure further collaborated to the pair's strong follow through recovery move from post flash-crash low below 1.20 psychological mark.
Technical levels to watch
A follow through buying interest above 1.2200 handle, leading a subsequent strength above 1.2220-30 resistance area, might now trigger a sharp short-covering rally 1.2280-85 resistance area, en-route 1.2300 round figure mark.
On the downside, weakness below 1.2150 immediate support could accelerate the slide back towards 1.2100 handle, ahead of its next major support near 1.2070-65 region.
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