GBP/USD flirting with daily highs near 1.2180

The greenback has now resumed its bearish note on Tuesday, allowing GBP/USD to advance to the area of daily tops in the 1.2180 region.

GBP/USD supported near 1.2100

After testing lows near the key support at 1.2100 the figure in early trade, spot has managed to regain attention and is now looking to surpass session highs around 1.2180.

The greenback has faded the earlier bull run to levels above the 102.00 handle when tracked by the US Dollar Index and has now deflated to the 101.70 area, back into the negative territory.

In the meantime, GBP is finally seeing some light at the end of the tunnel (at least temporarily) as market participants appear to have digested the recent and renewed concerns over the likeliness of a ‘hard Brexit’ scenario in the UK.

Looking ahead, the perspective for the Sterling should remain fragile in the near term, as the UK’s Supreme Court is expected to decide whether the Parliament or PM Theresa May can trigger Article 50 and carry on with the negotiating process.

GBP/USD levels to consider

As of writing the pair is up 0.04% at 1.2165 facing the next hurdle at 1.2305 (20-day sma) followed by 1.2415 (55-day sma) and finally 1.2431 (high Jan.6). On the downside, a break below 1.2107 (low Jan.10) would open the door to 1.2081 (low Oct.25) and then 1.1450 (GBP ‘flash crash’ Oct.7).