The pound underperforms as market participants remain worried about the UK’s economy in 2023. The pair continues to drift lower due to buyers taking profit after a two-month long rally and new sellers getting into the game. The psychological level of 1.2000 sits at the origin of last December’s rally and the sideways action is a sign of little buying. Though the price would remain depressed as long as it is under 1.2140, sentiment may only turn around if the bulls reclaim 1.2280. 1.1900 is a critical level to keep Sterling afloat.
