GBP/USD: bears looking for a break of 1.2200 on "Hard Brexit" fears

GBP/USD is pressured on'The Times' news and leaked controversial forecasts that Osbourn came up with in April earlier this year.

The media have used this leak to proclaim that if the UK pursues the so-called "hard Brexit" option of leaving the single market and EU customs union,  the UK's gross domestic product (GDP) could fall by as much as 9.5 per cent if it leaves the EU and reverts to World Trade Organisation rules.

GBP/USD was recently battered in a flash crash and has remained extremely fragile ever since. 1.2200 could come under pressure this week should Yellen's tone be hawkish while the greenback remains king at the moment, (The US Dollar Index - which tracks the buck vs. its main competitors - keeps the upside intact today and is currently advancing to fresh highs in the mid-97.00s), with EUR/USD also en-route and a few pips away of a break of the mid point of the 1.10 handle and Aug 5th lows as a key support area. 

GBP/USD levels

GBP/USD is now in a tight range of 1.2205 and the 1.2500 mark. The real danger will be a break below 1.1938 where analysts at Commerzbank would target the 1.0463 1985 low.