GBP/USD has popped a clean 50 pips just ahead of the Tokyo open, trading spot 1.2210 at time of writing after a high of 1.2232.
GBP/USD has been a choppy sideways – bid over the past 24hrs, breaking out from the European neutral drift in the US session from 1.2151 lows to the aforementioned highs. The tone was less favourable to the dollar with a u-turn in yields and a subdued turning negative close on Wall Street. There has not been a headline released that explains the move, however, Brexit hysteria is here with us for some years ahead and we can expect more of such volatility on sterling in what cable does best. We were in day two of the judicial review over Article 50 without conclusions thus far.
"The increasing doubts about the future of the UK, and how the kingdom's government will handle the Brexit keep undermining the Pound," – Valeria Bednarik, chief analyst at FXStreet
GBP/USD to remain under pressure in the short-term – Commerzbank
Meanwhile, spot is presently trading at 1.2219, and next resistance can be seen at 1.2232 (Daily High), 1.2241 (Weekly Classic PP), 1.2245 (Daily Classic R1), 1.2302 (Daily Classic R2) and 1.2341 (Daily Classic R3). Next support to the downside can be found at 1.2206 (Daily Classic PP), 1.2204 (Yesterday's High), 1.2203 (Hourly 100 SMA), 1.2184 (Daily Open) and 1.2181 (Hourly 20 EMA).