GBP/USD plunges to three-week lows near 1.2350 level

The GBP/USD pair accelerated the downslide during early European session and has now broken below 1.2400 handle.

Currently trading around 1.2365 region, the lowest level since Jan. 20, continuous strong bid tone around the US Dollar has been a key driver of the pair's downslide on Tuesday. Adding to this, possibilities of some big stops getting triggered on a decisive break below 1.2400 handle also seems to have collaborated to the pair's sharp downslide in the past hour or so.

Meanwhile, the British Pound has been under some selling pressure in wake of perceived dovish statement from BoE and against the backdrop of disappointing UK PMI reading out last week. Moreover, cautious investors’ sentiment, amid the ongoing Parliament discussion over the Article 50 legislation, continues to prompt traders to unwind any near-term bullish trading positions and is further contributing to the pair's sharp slide. 

Even from technical perspective, the pair has now divisively broken below its immediate strong support, near 100-day and 50-day SMAs, and hence, seems vulnerable to continue with its downward trajectory in the near-term.

Technical levels to watch

Immediate support on the downside is seen near 1.2330-25 region below which the pair is likely to slide further towards 1.2250 intermediate support, en-route 1.2200 round figure mark. On the flip side, any recovery above 1.2400 handle might now confront strong resistance near 1.2445-50 region.