GBP/USD slides further below 1.2200 handle

The GBP/USD pair ran through fresh offers above 1.2200 handle and has now dropped to a fresh session low. 

Currently trading around mid-1.2100s, the pair erased Friday's tepid recovery gains amid renewed greenback buying interest following Friday's slide on news of FBI probe on Clinton's email. Increasing bets of an eventual Fed rate-hike action before the end of this year continues to underpin the US Dollar and has been a key factor restricting any swift recovery for the major.

Meanwhile, the ongoing worries of a potential 'hard Brexit' and uncertainty over Mark Carney's decision to continue servicing as BoE Governor has further contributed to the offered tone around the British Pound and confined the pair within a short-term trading range near multi-decade lows. 

Next in focus would be US economic docket, featuring the release of Core PCE Price Index (Fed's preferred inflation gauge), personal income / spending data and Chicago PMI. The week's key focus would be on BoE's super Thursday, which would help investors to determine the next leg of directional move for the pair.

Technical levels to watch

A follow through selling pressure below 1.2150 immediate support is likely to turn the pair vulnerable to aim back towards 1.2100 handle, which if broken decisively would drag the pair further towards flash-crash swing lows support near 1.2000 psychological mark. 

On the upside, sustained recovery back above 1.2200 handle should lift the pair immediately towards 1.2250 strong hurdle above which the pair is likely to surpass 1.2300 handle and head towards testing its next resistance near 1.2330 region.

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