GBP/USD: Downside supported around 1.2170

Although the GBP/USD seems to have found support at 1.2170, the pair is struggling to hold above 1.22 amid broad USD strength and May's defeat in U.K. Parliament vote on Brexit-trigger Law.

Will Brexit be delayed?

Following a lengthy debate, the House of Lords in London voted by 366 to 268 on Tuesday in favor of changing May's draft Brexit law to give Parliament the ability to reopen negotiations if legislators decide the terms of the agreement aren't good enough, as reported by Bloomberg.

May wants to start Brexit talks by the end of March by formally invoking Article 50 of the EU's Lisbon Treaty. Former Tory cabinet minister Douglass Hogg told lawmakers during Tuesday's debate that U.K.'s future should rest with Parliament and not with ministers.

More headlines from the debate:

House of Lords Brexit debate: Nonsense to suggest a second referendum is undemocratic - Lord Turner

UK: Lords debate on Brexit bill

Despite a limited reaction to the data released by the United States, rate hike expectations continue to keep the demand high for the greenback. CME Group FedWatch tool shows that the markets are pricing an 84% chance of a 25 bp rate hike on March 15. 

Technical outlook

As of writing, the GBP/USD is down 0.34% at 1.2197 facing the first resistance at 1.2300 (Psychological level/Mar. 2 high), ahead of 1.2360 (Fib. 61.8% - Dec. – Jan. fall) and 1.2410 (50 DMA). On the downside, the first support is aligned at 1.2170 (daily low), followed by 1.2160 (Fib. 23.6% of mid-Jan. - mid-Feb. fall) and 1.2100 (psychological level).