GBP/USD rebounds to 1.2200 amid fresh USD selling

The GBP/USD pair remains on the defensive amid risk-off market profile, despite a renewed uptick, as Trump’s speech suggested that he may as well fail to deliver on his campaign promises

GBP/USD tracks USD-price action

The cable staged a solid reversal and swung back to test 1.22 handle, with the US dollar witnessing some aggressive selling, as Trump’s failure to touch upon fiscal spending plans and policy reforms sent the treasury yields lower, and hence, weighed on the greenback across the board.

However, the pound continues to remain under pressure as ongoing anxiety related to the Brexit-process and ahead of next week’s Supreme Case hearing on  the UK PM May securing MPs support to trigger Article 50. Meanwhile, BOE Governor Carney comments delivered yesterday also continue to remain a drag on sterling. Carney noted that the UK economy remains exposed to global risks and financial system instability.

The USD price-action is likely to influence the major in the day ahead, in absence of economic releases from the UK docket, while the US jobless claims and a couple of speeches by FOMC members will be closely eyed.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2254 (10-DMA), 1.2275 (20-DMA) and 1.2310 (daily R1). While supports are seen at 1.2173 (daily pivot) and 1.2150 (psychological levels) and below that at 1.2100 (multi-week lows).