GBP/USD struggling near two-month lows

The British Pound remained heavily offered across the board, with the GBP/USD pair trading few pips away from nearly two-month lows touched in the past hour.

The pair came under intense renewed selling pressure a day after the UK Parliament passed the Brexit bill, allowing UK PM Theresa May to formally begin the process of ending the country's membership with the EU. 

Market concerns surrounding the Brexit issue compounded after Scottish First Minister Nicola Sturgeon confirmed plans for a second Scottish independence referendum between the autumn of 2018 and spring 2019. 

Meanwhile, the US Dollar also saw moderate gains on Tuesday, which further compounded the selling pressure and collaborated to the pair's sharp downslide. Spot accelerated the bearish move and tumbled to 1.2100 neighborhood, its lowest level since Jan. 17, before bouncing off lows to currently trade around 1.2130 region.

Market participants now seemed to readjust their positions 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. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "the 4 hours chart shows that the price broke below its 20 SMA that anyway remains flat, whilst technical indicators have entered bearish territory, but lost downward strength. Still, the risk is towards the downside, with a break below the 1.2100 figure exposing the 1.2040 region. A recovery beyond the mentioned daily high could see the pair returning up to 1.2200, but selling interest will likely surge around this last, maintaining the upside limited."