GBP/USD recovers back above 1.2200 handle

Haresh Menghani FXStreet

Having posted a session through near 1.2170 level, the GBP/USD pair recovered over 40-pips from lows and has now moved back above 1.2200 handle.

Currently trading around 1.2220 region, the pair's current pull-back could be categorized as profit taking bounce ahead of a weekend. In absence of any market-moving economic releases from the US, traders seemed inclined to take lighten greenback bullish bets.

On Friday, the overall US Dollar Index stormed to 8-month highs amid reviving hopes of an eventual Fed rate-hike action by the end of this year. Moreover, the prevalent cautious sentiment in equity market is also underpinned the greenback's safe-haven appeal.

From technical perspective, the pair has rebounded after breaking below a short-term ascending trend-channel and hence, the current pull-back might now be viewed as an opportunity to initiate fresh short-positions.

Technical levels to watch

Additional recovery from current levels might now confront resistance near 1.2225 area above which a fresh bout of short-covering could lift the pair immediately towards 1.2270 resistance area. On the downside, weakness below 1.2200 handle might now find support near 1.2170 level (session low), which if broken is likely to accelerate the slide immediately towards 1.2150-45 support area.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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