The British pound is back under selling pressure against the US dollar as the chances of a hard-Brexit scenario appear to have increased. A sustained break below the 1.2200 support level could trigger a major technical sell-off in the GBPUSD pair, with the yearly trading low the initial target. Overall, moves back towards the 1.2275 level are likely to be met with strong counter selling.
• The GBPUSD pair is only bearish while trading below the 1.2275 level, key support is found at the 1.2200 and 1.2100 levels. • If the GBPUSD pair trades above the 1.2200 level, key resistance is found at the 1.2250 and 1.2275 levels.