GBP/USD pauses sell-off, keeps 1.2200 despite risk-off

The GBP/USD pair remains better bid so far this session, extending its recovery from seven-week lows reached yesterday at 1.2167.

GBP/USD remains vulnerable below 1.2200

The bears took a breather from two back-to-back sessions of losses and now attempts a tepid-bounce above 1.22 handle, despite risk-off tone witnessed around the Asian equities.

However, the GBP/USD pair remains exposed to further downside risks as the pound remains weighed by another setback faced by the UK PM May in her effort to trigger the Article 50, after the Brexit Bill failed to pass through the House of Lords for the second time yesterday. The Brexit Bill defeat threatens the UK PM May’s plans to initiate the Brexit process this month, which will continue to undermine the sentiment around the GBP.

Later today, all eyes will remain on the UK Annual Budget release, with the UK finance minister Hammond expected to provide an upbeat assessment of the economy. Also, the US ADP jobs report will be closely eyed for further momentum on the pair.

GBP/USD Levels to consider            

At 1.2208, the resistances are lined up at 1.2248/53 (5-DMA/ previous high) and 1.2303/04 (10-DMA/ Mar 6 high) and above that at 1.2333/50 (classic R3/ round figure). On the flip side, the resistances are aligned at 1.2167/61 (multi-week low/ classic S1) and 1.2121 (classic S2/ Fib S3) and below that at 1.2100 (psychological levels).