GBP/USD off session lows, still weaker below 1.2300 handle ahead of Trump

The GBP/USD pair maintained its bearish bias below 1.2300 handle, albeit has managed to bounce off around 30-pips from session low.

Currently trading around 1.2290 region, a sharp contraction in UK monthly retail sales figure attracted some fresh selling pressure around the British Pound. Adding to this, renewed greenback buying interest, amid surging US treasury bond yields, further aggravated the downslide and dragged the pair session low. 

However, the US Dollar buying interest seems to have stalled during early NA session as investors continue to readjust their positions ahead of the big even risk, Trump's inaugural speech, which would determine the US Dollar's next leg of directional move and eventually drive the major in the near-term. 

With an empty US economic docket, the pair remains at the mercy of broader greenback price dynamics and market expectations and interpretation of Trump's reflation policies.

Technical levels to watch

A follow through selling pressure below session low, leading to a subsequent break below 1.2250 support, is likely to accelerate the slide towards 1.2210 support ahead of the next horizontal support near 1.2160-55 region. On the upside, recovery above 1.2300 handle might now confront resistance near 1.2335-40 region, which if cleared now seems to assist the major to surpass session peak resistance, and 1.2400 round figure mark, towards testing 50-day SMA strong hurdle near 1.2415-20 region.