GBP/USD: Brexit continues to weigh, capping bid on weak greenback

Currently, GBP/USD is trading at 1.2201, down -0.01% on the day, having posted a daily high at 1.2319 and low at 1.2169.

GBP/USD has dropped, despite broad based dollar weakness while Brexit fears continue to weigh on the pound and May is due to make a speech regarding Brexit next week sending markets in a panic and sending the pound off a small cliff.

GBP continues to be affected by Brexit fears - SocGen

"Hard Brexit" worries have - and will continue - to weigh on the GBP's near-term prospects, we think, even if yesterday's remarks from BoE Gov. Carney highlight the fact that the post-referendum environment has not produced the sort of negative economic shocks that had been feared," explained analysts at Scotibank, adding, "Broader fundamental risks remain as the Brexit process unfolds." Meanwhile, the price is back below the 200 sma on the 1hr sticks and technicals are bearish.

GBP: Risks remain concentrated around the triggering of Article 50 - Westpac

GBP/USD levels

Spot is presently trading at 1.2201, and next resistance can be seen at 1.2201 (Daily Open), 1.2233 (Hourly 20 EMA), 1.2253 (Hourly 200 SMA), 1.2273 (Yesterday's High) and 1.2303 (Daily Classic R1). Support below can be found at 1.2195 (Hourly 100 SMA), 1.2177 (Weekly Classic S1), 1.2171 (Daily Classic PP), 1.2169 (Daily Low) and 1.2161 (Monthly Low).