GBP/USD recovers back closer to 1.2200 handle; will it sustain?

Haresh Menghani FXStreet

The GBP/USD pair extended its recovery move from session low near 1.2140 region and is now fast approaching towards reclaiming 1.2200 handle.

Currently trading around 1.2190 region, testing fresh session, renewed US Dollar weakness during early European session, amid follow through retracement in the US treasury bond yields, helped the major to stall a fresh wave of intense selling pressure witnessed in the previous session.

On Thursday, the pair came under intense selling pressure and tumbled over 160-pips from weekly high on news report that UK Prime Minister Theresa May will deliver a speech next week, which re-ignited concerns of 'hard Brexit'.

Today's UK economic docket features the quarterly release of BOE's Credit Conditions survey report. Later during NA session, the release of monthly retail sales, PPI print and Prelim UoM Consumer Sentiment index from the US would now be looked upon for some short-term trading opportunities.

Technical levels to watch

Recovery momentum above 1.2200 handle could get extended but is likely to capped at 1.2235 horizontal resistance and only a sustained move above this immediate resistance would increase prospects of further recovery back towards 1.2300 handle ahead of 1.2315-20 strong hurdle.

On the downside, renewed weakness below 1.2160-50 immediate support now seems to drag the pair back towards 1.2120-15 horizontal support before eventually breaking below 1.2100 handle and head towards testing 1.2080-75 support area.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.2306

30% Bullish
30% Bearish
40% Sideways

Bias Sideways

1 Month

Avg Forecast 1.2237

27% Bullish
60% Bearish
13% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.2098

5% Bullish
58% Bearish
37% Sideways

Bias Bearish

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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