GBP/USD breaks lower to test 20-DMA

The GBP/USD pair finally broke its Asian consolidation box to the downside, after having faced rejection once again just shy of 1.25 handle.

The major extends the break further southwards in Europe, now hitting fresh session lows at 1.2450, largely on the back of some aggressive buying seen in the greenback versus its main peers.

While risk-off sentiment appears to have returned to markets, evidenced by extended sell-off in US treasury yields and negative European equities, which further adds to the renewed weakness in cable.

Amid a data-light week ahead, all eyes remain on Wednesday’s House of Commons vote on the Article 50 bill. In the meantime, the spot may take some fresh cues from the US LMCI data due on the cards later today.

GBP/USD Levels to consider            

The upside barriers are lined up at 1.2500 (zero figure), 1.2529 (5-DMA) and 1.2545 (10-DMA). While supports are aligned at 1.2396 (100-DMA) and .2350 (key support) and below that at 1.2300 (round number).