GBP/USD has suffered heavy losses at the beginning of the week. As FXStreet’s Eren Sengezer notes, 1.22 is under threat.

A recovery in the current market environment seems unlikely

“The risk-averse market environment makes it difficult for the pair to stage a rebound.” 

“If the pair were to stage a technical correction, 1.2270 (static level, former support) aligns as first resistance ahead of 1.23 (psychological level).” 

“With a daily close above 1.23, sellers could book their profits and move to the sidelines, allowing the pair to extend its recovery toward 1.2350 (static level).”

“On the downside, 1.220 (psychological level) could be seen as the next bearish target ahead of 1.2155 (two-year low set on May 13).”