GBP/USD in red for third straight session, but manages to hold above 1.2400 handle

The British Pound remained under some selling pressure on Tuesday, with the GBP/USD pair running through fresh offers near mid-1.2400s and is now inching back towards the 1.2400 handle. 

Currently trading around 1.2415-20 region, testing session lows, the pair traded with bearish bias for the third consecutive session after the Times of London reported that UK Prime Minister Theresa May was preparing for another Scottish independence referendum. The uncertainty around the future of Scotland continues to weigh on the British Pound, albeit has failed to trigger a break through the pair's near-term trading range. It is worth noting, that despite of Monday's sharp reaction to three-week lows, the pair has managed to hold near-term trading range support around the 1.2380-85 area.

Absent fundamental drivers, in terms of any major market moving releases, from the UK economic docket, the US Dollar price dynamics and fresh news / developments surrounding the Scottish referendum would remain key determinants of the pair's move during European session.

Later during NA session - prelim US GDP figures, Chicago PMI and CB's Consumer Confidence Index, alongside the US President Donald Trump's first address to Congress would provide fresh impetus for the pair's near-term directional move. 

Technical levels to watch

Weakness below 1.2400 handle might continue to find support near 1.2385-80 region, which if broken decisively would confirm a break down and turn the pair vulnerable to slide below 1.2300 round figure mark towards testing its next support near 1.2255-50 region. On the upside, momentum above 1.2450 level, leading to a subsequent strength above 1.2470 resistance, is likely to lift the pair beyond 1.2500 psychological mark, towards testing 1.2420 intermediate hurdle ahead of 1.2550-55 trading range resistance.