GBP/USD flirting with multi-week lows

Having faced rejection near 1.2300 handle, the GBP/USD pair came under renewed selling pressure and dropped closer to multi-week lows support near 1.2230 region.

The pair, however, has held this immediate support for the time being and is now consolidating its sharp slide near 1.2240-45 band. Renewed 'hard Brexit' worries accompanied with resurgent US Dollar buying interest, on growing expectations of stronger US economic growth and higher interest rates, have been the key factor exerting fresh selling pressure around the major. 

Even the only the only piece of relevant data from UK, Mortgage Approvals, failed to provide any respite for the bulls. In fact, the number of new mortgage approvals for November came-in at 40.659K, down from previous month's 40.835K previous and 41.4K expected. 

Focus now shift to US economic docket - featuring the release of pending home sales data, which again is unlikely to shaken the greenback’s well-established bullish trend. 

Technical levels to watch

A follow through selling pressure below multi-week lows support near 1.2230 region is likely to accelerate the slide towards 1.2200 handle below which a fresh bout of selling pressure is likely to drag the pair further towards 1.2160 horizontal support, en-route 1.2100 round figure mark.

On the upside, any recovery move above 1.2265 immediate resistance might continue to confront strong resistance near 1.2300 handle, which if cleared has the potential to lift the pair towards an important horizontal support break-point, now turned resistance, near 1.2325-30 region.