GBP/USD rejected at 5-DMA, skids back below 1.2300

GBP/USD’s recovery from almost 300-pips sell-off lost steam at 1.2325 levels, with the bears taking back charge, sending the rate back below 1.23 handle.

GBP/USD fails to resist above 1.23 handle

The cable once again failed to survive above 1.2300 barrier and came under fresh selling pressure, as the USD stalled its downward correction versus its main competitors amid strengthening treasury yields.

Moreover, markets moved past reports of UK PM May’s acceptance of a parliamentary vote on Brexit negotiations late-Tuesday, which offered some respite to the GBP bulls and lifted the rate from near 1.21 handle. The major is seen last exchanging hands at 1.2280 levels, still up +1.29% on the day.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2325/27 (daily high/ 5-DMA), 1.2400 (round number) and 1.2486 (daily R2). While supports are lined up at 1.2195 (daily pivot) and 1.2106 (daily low) and below that at 1.2086 (Oct 11 low).