GBP/USD reverses tepid recovery gains, slips to 1.2250 ahead of UK PMI

The GBP/USD pair reversed tepid recovery gains to session peak near 1.2285 region and drifted into negative territory for the sixth consecutive session.

Currently hovering around mid-1.2200s, testing session lows, the pair has not been able to find any buyer amid renewed Brexit fears, especially after the House of Lords, earlier this week, voted to amend the Brexit bill demanding guarantee for EU nationals in the UK once the country leaves the bloc.

In addition this, broader market consensus that the Fed would eventually move towards raising the US benchmark interest rates at its upcoming meeting on March 14-15 continued underpinning the greenback demand, with the key US Dollar Index rising above the 102.00 handle to two-month highs and further collaborating to persistent selling pressure around the major. 

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The pair, however, has managed to defend 1.2250-40 support area against the backdrop of Thursday's better-than-expected UK Construction PMI. Today's release of UK services PMI, in a short while from now, would now be looked upon for some impetus during European trading session.

However, key focus would remain on Fedspeaks, especially the Fed Chair Janet Yellen, due later during the day, which would help investors determine the pair's near-term trajectory.

Technical levels to watch

A follow through selling pressure below 1.2250-40 area is likely to accelerate the slide towards 1.2215-10 intermediate support before the pair eventually breaks through the 1.2200 handle and head towards testing 1.2155-50 horizontal support.

Meanwhile on the upside, any recovery attempts might continue to confront immediate resistance near 1.2300 round figure mark, above the recovery could get extended towards 1.2345 resistance en-route an important support break-point, now turned strong resistance near 1.2380-85 zone.