GBP/USD plummets to six week low near 1.2300 handle, up next US economic releases

After showing some resilience to disappointing UK manufacturing PMI, the GBP/USD pair finally broke through the consolidative phase and tumbled to six week low. 

Currently hovering around the 1.2300 handle, spot accelerated the downslide amid persistent US Dolar buying interest as markets now seem to price-in higher possibilities of an eventual Fed rate-hike action at its upcoming meeting on March 14-15.

Meanwhile, the latest leg of intense selling pressure around the British Pound could be attributed to news relating to Article 50 Bill's, due for a vote in the House of Lords, amendment clause to guarantee rights of EU migrants living in the UK. 

Moreover, possibilities of some stops getting triggered on a decisive break below mid-1.2300s could have further aggravated the selling pressure and collaborated to the pair's sharp slide in the past hour or so.

Next on tap would be the US economic docket, which would be looked upon for some immediate respite for the bulls.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, “The downward strength is limited at the time being, although a break below 1.2345, the 50% retracement of the January bullish run should fuel the slide, firstly towards 1.2300 and then towards 1.2270 in the short term. To the upside, the pair needs to extend beyond 1.2440 to reverse the negative tone, and be able to advance towards 1.2485.”