GBP/USD stays closer to multi-week lows below 1.2150

As the US session gets underway, the GBP/USD pair came under renewed selling pressure and dropped back to retest session low. The pair, however, once again found some support near 1.2125 region and has retraced around 20-pips from swing lows. 

Currently trading around 1.2140-45 region, renewed Brexit concerns has been the key theme on the first day of a fresh trading week after UK Prime Minister Theresa May, in an interview over the weekend, made her position clear about prioritizing border control over access to the single market. 

Adding this, weekend rhetoric from Nicola Sturgeon over holding another referendum on Scottish independence referendum in the event of a 'hard Brexit' is also collaborating to selling pressure surrounding the major. 

Looking at the broader picture, decisive break below 1.2200 handle, held since early November, and might have triggered some stops on the way and could have also contributed to the pair's sharp slide on Monday.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet note, "The 4 hours chart shows that the price has plunged below its 20 SMA, while technical indicators head south with a strong bearish momentum entering oversold territory and with no signs of changing bias, supporting further slides ahead. The oversold conditions present y shorter time frames could result in some consolidation, but attempts to correct higher will likely attract selling interest, maintaining the risk towards the downside."

"Below 1.2125, the immediate support, the price can extend its slide towards 1.2080, October 25th low, whilst below this last, 1.2050 comes next. A strong resistance comes at 1.2190, and it will take a clear advance beyond it to deny further intraday declines, with scope then to recover up to 1.2240."