GBP/USD: Recovery gains traction, nears 1.2250

Dhwani Mehta FXStreet

The recovery in the GBP/USD pair gathered steam over the last hour, now pushing the rate close towards the mid-point of 1.22 handle.

GBP/USD jumps to tests 10-DMA

The cable found renewed bids and erased most loses as demand for the US dollar lost strength as the UK traders hit their desks. The USD index moved further away from fresh eight-month peaks to now trade flattish near daily lows of 98.60.

Further, positive opening seen on the European markets combined with a bounce in oil prices, provided extra legs to the ongoing recovery in the major.

Meanwhile, markets digest the latest speech delivered by BOE policymaker Shafik on the ‘Monetary, Financial and Prudential Policy Interactions in the Post-Crisis World’ this Monday.

Next of note for the major remains the UK CBI industrial order expectations data ahead of the US manufacturing PMI and BOE Carney’s speech due later in the American session.

GBP/USD Levels to consider

The pair finds immediate resistances placed at 1.2263 (Oct 21 high), 1.2300 (Oct 20 high) and 1.2334 (Oct 19 high). While supports are lined up at 1.2185 (daily low) and 1.2134 (Oct 17 low) and below that at 1.2100 (round figure).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Strongly Bearish	Neutral	Shrinking
1H	Bearish	Neutral	Low
4H	Bearish	Oversold	Expanding
1D	Bullish	Neutral	Low
1W	Bullish	Neutral	Low
Updated Oct 21, 06:15 GMT

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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