The GBP/USD pair failed to build on tepid recovery move from Tuesday's multi-week lows and retreated back to mid-1.2100s. The pair, however, has managed to bounce off few pips from session low and is currently trading around 1.2165 region ahead of UK manufacturing data.
Persistent worries of 'hard Brexit' continues to attract fresh selling pressure around the British Pound and spot ran through fresh offers at a previous strong support, now turned immediate resistance, near 1.2200 handle. Moreover, moderate US Dollar strength, as investors await for Donald Trump's scheduled press conference, also collaborated to the pair's weakness on Wednesday.
Wednesday's UK economic docket, featuring the release of manufacturing and industrial production data, accompanied with Goods Trade Balance for November, would be looked upon for short-term trading opportunities. Investors on Wednesday will also focus on BOE Governor Mark Carney's testimony before the Parliament's Treasury Select Committee, which might provide some fresh impetus for the pair's near-term trajectory.
Technical levels to watch
Immediate support below 1.2150 level is pegged near 1.2135-30 region below which the pair is likely to break below 1.2100 handle and head towards 1.2080-75 support area. On the upside, any recovery momentum above 1.2175-80 resistance might continue to confront strong hurdle near 1.2200 handle, which if cleared decisively might trigger a short-covering bounce towards 1.2280-85 resistance area.