GBP/USD: minor recovery capped on Brexit concerns, falling shy of significant levels

Currently, GBP/USD is trading at 1.2246, up 0.22% on the day, having posted a daily high at 1.2277 and low at 1.2209.

GBP/USD has been drifting along on the downside, with a minor recovery attempt yesterday that was subdued and capped before any significant levels.

"The Pound eased in the American afternoon, amid the threat of a "hard Brexit" looming, as Theresa May attempts to trigger the Art. 50 as soon as this March," explained Valeria Bednarik, chief analyst at FXStreet, adding, "From a technical point of view, the risk remains towards the downside, given that in the 4 hours chart, a bearish 20 SMA contained the early advance, now providing an immediate resistance around 1.2255, while technical indicators remain directionless within bearish territory."

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More GBP/USD levels

Current price is 1.2246, with resistance ahead at 1.2262 (Hourly 100 SMA), 1.2277 (Daily High), 1.2278 (Daily Classic R1), 1.2286 (Weekly High) and 1.2298 (Yesterday's High). Next support to the downside can be found at 1.2241 (Hourly 20 EMA), 1.2239 (Daily Classic PP), 1.2219 (Monthly Low), 1.2219 (Weekly Low) and 1.2219 (Daily Open).