GBP/USD short covering didn't last long, bears emerge through 1hr 200 sma

Currently, GBP/USD is trading at 1.2215, down -0.19% on the day, having posted a daily high at 1.2240 and low at 1.2211.

GBP/USD had been making some tracks back to the upside overnight with a decent bid from below the 1.22 sticky handle at 1.2192 lows to a session high of 1.2242 before supply came back in and took the pair down to current spot. There appeared to be some short covering taking place with the yield spreads between gilts treasuries and the bunds, but bears have taken the opportunity to fade, adding to shorts as price struggles through the 200 sma on the 1hr sticks. 

GBP/USD analysis: Brexit uncertainty to keep Pound pressured

While the uncertainties over Breit have taken a back seat, markets can still see the menacing state of affairs in the rear view mirror and the presence remains somewhat overwhelming. 

GBP/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that, technically, the pair maintains a neutral-to-bearish stance, given that in the 4 hours chart, the price remained capped by a modestly bearish 20 SMA, whilst indicators lack directional strength within negative territory. "Friday's low at 1.2170 is the immediate support, with a break below it required to confirm a bearish extension for this Tuesday."

Meanwhile, spot is presently trading at 1.2216, and next resistance can be seen at 1.2222 (Daily Classic PP), 1.2222 (Hourly 20 EMA), 1.2231 (Hourly 200 SMA), 1.2233 (Weekly Classic PP) and 1.2239 (Daily Open). Support below can be found at 1.2211 (Daily Low), 1.2186 (Yesterday's Low), 1.2183 (Weekly Low), 1.2180 (Daily Classic S1) and 1.2134 (Weekly Classic S1).