GBP/USD accelerates the bearish slide to 8-week lows

The GBP/USD pair accelerated the downslide and tumbled to fresh multi-week lows during early European session on Tuesday. 

Currently trading around 1.2135 region, the lowest level since Jan. 17, the pair came under intense selling pressure and reversed all of its previous session's recovery gains despite of some positive developments around the Brexit issue. 

On Monday, the House of Commons turned down the House of Lords amendments and passed the Brexit bill, allowing the UK PM Theresa May to trigger Article 50 and formally begin the process of ending the country’s association with the European Union. The pair even shrugged off news report that the UK PM would reject the Scottish First Minister Sturgeon's demand for a second independence referendum. 

Forex Today: GBP heavy amid Brexit news, ZEW, Draghi eyed

With no fundamental drivers behind the pair's sharp bearish slide on Tuesday, the move could be attributed to repositioning as traders appeared to lighten their bets ahead of this week's key event risks - the FOMC decision and UK employment details on Wednesday, followed by the BoE monetary policy decision on Thursday. 

Meanwhile, a mildly positive tone surrounding the US treasury bond yields have been supportive of the US Dollar's modest up-move, which is further collaborating to the offered tone surrounding the major. 

Technical levels to watch

A convincing break below multi-week lows support near 1.2135-30 area is likely to accelerate the slide even below the 1.2100 handle, towards 1.2040 intermediate support ahead of the key 1.20 psychological mark support.

On the upside, recovery back above 1.2160-65 area now seems to confront strong resistance near 1.2210-15 region, above which a fresh bout of short-covering has the potential to lift the pair beyond 1.2265-70 intermediate resistance towards the 1.2300 handle.