GBP/USD: Recovery from Hard-Brexit sell-off stalls at 1.2085

The GBP/USD pair attempts yet another bounce beyond 1.20 handle, after the major reversed a brief dip to almost four-month lows struck at 1.1988 just ahead of the European open.

GBP/USD capped near daily R2 at 1.2083

The cable is seen meeting fresh supply on every attempt to fill in the bearish opening gap, on increased expectations that Tuesday’s speech by the UK PM May will signal a Hard-Brexit, as she remains on track to invoke the Article 50 by the end of March.

Further, any bounce in the GBP/USD pair may remain short-lived as markets remain unnerved also ahead of this week’s UK Supreme Court hearing on the Article 50 challenge, which the government is widely expected to lose.

Later today, the two-way trades in the major may be exaggerated in light of thin volumes as the US markets are closed on account of a National Holiday.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2083/ 85 (daily R1/ high), 1.2100 (zero figure) and 1.2125 (5-DMA). While supports are aligned at 1.1988 (multi-week low) and 1.1850 (post-Flash crash low) and below that at 1.1800 (key psychological support).