• The optimism led by the UK Supreme Court ruling turned out to be short-lived.
• UK political uncertainty/unresolved Irish backstop issues exert some pressure.
• A goodish pickup in the USD demand further collaborated to the weaker tone.

The selling pressure around the British Pound picked up some pace during the early European and dragged the GBP/USD pair to fresh session lows, around the 1.2435 region in the last hour.
 
The pair met with some fresh supply on Wednesday and erased a major part of the previous session's goodish move up to the key 1.2500 psychological mark, which followed the UK Supreme Court ruling that PM Boris Johnson's prorogation of the Parliament was unlawful.

The overnight bounce fizzles out rather quickly

With the overnight optimism turning out to be short-lived, the fact that there are still big differences between the UK and the EU over a possible solution to the Irish backstop issue seemed to be one of the key factors exerting some downward pressure on the British Pound.
 
This coupled with growing UK political uncertainty, wherein the UK opposition Labour Party leader Jeremy Corbyn said that Labour will not call no-confidence vote now and that our priority is to prevent a no-deal Brexit, further dented sentiment surrounding the Sterling.
 
The pair was further pressurized by some renewed buying interest surrounding the US Dollar amid recovering US bond yields and US-China trade optimism, especially after reports suggested that China is planning to buy more US farm products as a goodwill gesture ahead of the high-level trade talks.
 
It will now be interesting to see if the pair is able to attract any buying interest at lower levels or the current leg of a downtick marks the end of the recent strong recovery move from multi-year lows, levels below the key 1.20 psychological mark testing earlier this month.

Technical levels to watch