GBP/USD downside gathers pace, breaches 1.2200

The selling pressure around the British Pound is now picking up extra pace, now dragging GBP/USD to fresh lows in sub-1.2200 levels.

GBP/USD weaker on Brexit fears

Spot met further downside pressure on Tuesday as the focus of attention in the UK has shifted to the vote from the House of Lords, where PM Theresa May could face another setback.

It is worth recalling that the Upper House last week voted to amend the Brexit bill, demanding guarantees for EU citizens living in the UK after the country leaves the euro region.

The House of Lords will vote later today on the Parliament’s right in law to approve or reject her deal to leave the euro bloc. That said, May’s original idea of triggering Article 50 at some point in late March could come under scrutiny.

In the data space, house prices tracked by Halifax rose 0.5% MoM during February and 5.1% over the last twelve months, missing initial estimates. Across the pond, the IBD/TIPP Economic Optimism index is due along with January’s trade balance figures.

GBP/USD levels to consider

As of writing the pair is losing 0.38% at 1.2191 and a break below 1.2104 (low Jan.10) would aim for 1.2014 (low Jan.17) and finally 1.1979 (low Jan.16). On the flip side, the initial up barrier aligns at 1.2308 (high Mar.2) followed by 1.2385 (55-day sma) and then 1.2410 (100-day sma).