GBP/USD reverses to hit fresh 7-week lows ahead of GDP

The recovery in the GBP/USD pair lost legs just shy of 1.23 handle, as the bears fought back control in wake latest a latest report on Brexit, which revealed that a majority of academic and policy researchers believe that the UK economy will suffer from a ‘Hard Brexit’ landing.

Further, risk-aversion intensified after oil prices extended losses, weighing slightly on the UK’s commodity-heavy FTSE 100 index, eventually impacting the GBP flows.

Additionally, a recovery in the US dollar index, a relative gauge of the greenback’s strength, also led to the latest leg down in the GBP/USD pair. The spot is currently seen trading at fresh seven-week lows of 1.2258, down -0.22% on the day.

Next on tap for the major remains the UK GDP and current account data due to be reported ahead of the US datasets.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2300 (round figure), 1.2338 (5-DMA) and 1.2379 (Dec 22 high). While supports are seen at 1.2250 (psychological levels) and 1.2206 (daily S2) and below that at 1.2141 (Oct 31 low).dh