GBP/USD trims a part of early slump, holds steady above 1.2200 handle

• The UK government's moves to suspend parliament prompts some aggressive intraday selling.
• The bearish pressure eases following some positive comments by the European Commission.

The GBP/USD pair has managed to recover around 50-60 pips from an early slump to weekly lows and now seems to have stabilized above the 1.2200 round figure mark.

Brexit headlines continue to influence

The British Pound came under some intense selling pressure during the early European session on Wednesday and tumbled over 130-pips intraday in reaction to the UK PM Boris Johnson's controversial move to prorogue Parliament for five weeks.
 
The decision means that the opposition lawmakers would be unlikely to have enough time to pass any legislation to block the UK’s exit from the European Union on October 31 without a negotiated deal and weighed heavily on the Sterling.
 
The pair tumbled to mid-1.2100s area but managed to find some support following some positive comments from the European Commission, saying that they will engage with the UK on any constructive proposals to address the backstop issue.
 
This was followed by news that the Court of Session in Edinburgh on Thursday will consider a petition backed by more than 70 MPs - aimed at blocking Boris Johnson's prorogation bid - and provided some respite for the GBP bulls.
 
It, however, remains to be seen if the pair is able to capitalize on the goodish intraday recovery attempt or meets with some fresh supply at higher levels amid renewed no-deal Brexit fears and absent relevant market moving economic releases.

Technical levels to watch