GBP/USD flirting with multi-week lows below 1.2200 handle

The selling pressure around the British Pound remains unabated, dragging the GBP/USD pair below the 1.2200 handle to its lowest level since Jan. 17.

Currently trading around 1.2190-85 region, testing session lows, the pair remained under some selling pressure for the second consecutive day and accelerated its rejection move from 1.2300 handle as market participant remained focused on Brexit bill debate in the House of Lords. 

It is worth reporting that another rejection of the amended Brexit Bill, in the House of Lords, might endanger UK PM Theresa May's intension to trigger Article 50 of the Lisbon treaty by the end of this month. 

Meanwhile, a fresh wave of up-move in the US treasury bond yields further underpinned the US Dollar demand and collaborated to the pair's downslide to fresh 7-week lows. 

Next on tap would be the release of trade balance data from the US, which is unlikely to provide any fresh impetus for the major as market attention remains glued to any fresh developments / news around the Brexit bill ahead of this week's key event risk - the US monthly jobs report on Friday.

Technical levels to watch

A convincing break below 1.2185 level would turn the pair vulnerable to extend its bearish slide immediately towards mid-1.2100s, en-route 1.2115-10 horizontal support. On the flip side, any recovery might now confront immediate resistance near 1.2235 level, above which the momentum could get extended back towards the 1.2300 handle.