GBP/USD extends strong recovery move to 1.2250 level

The GBP/USD pair continues to gain strong buying interest during UK PM Theresa May's much awaited speech on Brexit.

The pair surged beyond mid-1.2200s as market cheered news that the government will put final Brexit deal for a vote in both Houses of the Parliament. Bulls also benefited from May's comments that Britain will work with Scotland, Wales, and Northern Ireland on Brexit.

May further added UK will not be paying huge sums to EU budget but only an appropriate contribution to gain access to the lucrative European Union's single market and echoed earlier statement from UK Finance Minister Philip Hammond that Britain would seek a comprehensive free trade arrangement with the Union. 

Market seems to have liked the proposal of the Parliament vote and government’s efforts to deliver a ‘clean Brexit’. Meanwhile, possibility of some stops getting triggered on a decisive move above 1.2200 handle could have also collaborated to the pair's strong up-surge in the last hour.

Technical levels to watch

Bulls would be aiming to clear 1.2265-70 immediate resistance above which the pair seems all set to reclaim 1.2300 handle and head towards 1.2315-20 resistance area (Jan. 12 high). On the downside, 1.2215-10 area now becomes immediate support, which if broken could accelerate the slide back towards 1.2160-55 region ahead of 1.2120-15 support area.