GBP/USD hits fresh 7-week lows just ahead of 1.2200

The GBP/USD pair keeps the offered tone intact, and now makes minor-recovery attempts from fresh multi-week lows reached at 1.2205 some minutes ago.

GBP/USD vulnerable below 1.2200

Having stalled its overnight recovery near the mid-point of 1.22 handle, cable witnessed aggressive selling over the last hours, as the European traders hit their desks and reacted negatively to the news of US taking action against North Korean missiles launch, which continues to spook markets.

Moreover, unnerved markets ahead of the House of Lords vote on the Parliament’s right in law to approve or reject the UK PM May deal to trigger the Article 50, also collaborates to the downbeat sentiment around the pound.

Additionally, disappointing Halifax HPI data from the UK docket also weigh down on the GBP/USD pair. Focus nw remains on the US trade balance data due later today ahead of Wednesday’s UK Annual Budget release for fresh incentives.

GBP/USD Levels to consider            

Haresh Menghani, Analyst at FXStreet noted, “A convincing break below the trend-channel support would confirm another break-down and turn the pair vulnerable to accelerate the slide towards mid-1.2100s, en-route 1.2115-10 horizontal support. The downward trajectory could further get extended towards retesting 1.20 psychological mark, with some intermediate support near 1.2080-70 area.’

“On the upside, momentum above 1.2250 level could get extended, but might continue to confront strong resistance near 1.2300 handle. On a sustained strength above this strong hurdle, a fresh bout of short-covering has the potential to lift the pair towards 1.2385-90 region before attempting a move back towards 1.2500 psychological mark,” Haresh added.