GBP/USD: 170 pip rally - shenanigans or just the new norm - lets go with the latter

GBP/USD is recovering hard in early Asia along with profit taking the US dollar while a report was released on Bloomberg that PM May has accepted that Parliament should be allowed to vote on her plan for taking Britain out of the European Union. 

GBP/USD has rallied 170 pips in early Asia after it experienced a huge fall-out last week on May's hard line hard Brexit announcements and was further battered due to a flash crash. Sterling actually dropped below 1.20 and some reported it even fell to the 1.11 handle on screens with the market pulling bids. 

However, it managed to fill the void and had been oscillating back in the low- mid 1.20's with a recent low of 1.2088. The pound is in recovery of those lows now in a huge rally from 1.2114 to 1.2280 on the last hourly stick. We have much more to come from Sterling over the course of the next week's. for instance, against this backdrop today, as explained in the Bloomberg article, "London Court this week will rule whether May can trigger Article 50 of the Lisbon Treaty, which starts an exit, without approval from her fellow lawmakers."

GBP/USD levels

Spot is presently trading at 1.2213, and next resistance can be seen at 1.2219 (Daily Classic S3), 1.2222 (Hourly 20 EMA), 1.2282 (Daily Classic S2), 1.2287 (Daily High) and 1.2321 (Daily Classic S1). The 1.2500 is a key target. Support below can be found at 1.2122 (Daily Open). 

UK PM May accepts Parliament vote over Brexit terms, GBP shorts run to the exits