GBP/USD tumbles to lows on Supreme Court ruling, near 1.2440

GBP/USD faded the initial spike to daily highs beyond the 1.2500 handle, returning to the area of session lows in the 1.2450/40 band.

GBP/USD weaker post-data, Brexit ruling

Spot met further selling pressure despite the UK’s Supreme Court ruled against the government today. In fact, the Supreme Court voted 8-3 that triggering Article 50 needs the approval of the Parliament.

Market participants largely anticipated the news, particularly after PM T.May’s speech last week.

In the data space, UK’s Public Sector Net Borrowing dropped to £6.42 billion in December, down from November’s £10.83 billion.

GBP/USD levels to consider

As of writing the pair is losing 0.54% at 1.2464 facing the next support at 1.2412 (55-day sma) followed by 1.2250 (low Jan.18) and finally 1.1979 (low Jan.16). On the upside, a break above 1.2546 (high Jan.23) would open the door to 1.2729 (high Dec.13) and then 1.2776 (high Dec.6).