GBP/USD: remains solid around the 1.23 handle and in recovery

Currently, GBP/USD is trading at 1.2299, up 0.01% on the day, having posted a daily high at 1.2306 and low at 1.2292.

The dollar has been on the backfoot and has enabled a recovery in the pound back to the 1.23 handle. The daa n the US is soft and this is keeping the idea of a Fed hike on the back burner. Atthe same time, UK data  showed that CPI was rising from 1.3% to 1.5% (vs 1.4%b expected). We have UK jobs tomorrow as the main event ahead of US housing starts and permits that analysts at Westpac suggested should continue their volatile patterns but the uptrend remains intact.FOMC member Williams will speak in New Jersey.

GBP/USD levels

Current price is 1.2300, with resistance ahead at 1.2306 (Daily High), 1.2327 (Yesterday's High), 1.2392 (Weekly Classic R1), 1.2596 (Daily 20 SMA) and 1.2598 (Weekly Classic R2). Further out, analysts at Commerzbank explained we have a resistance line at 1.2947 and will consider that the market remains directly offered below the 1.3056 late September high. Below 1.1938 we would target the 1.0463 1985 low. Meanwhile, Next support to the downside can be found at 1.2297 (Daily Open), 1.2295 (Hourly 200 SMA), 1.2292 (Daily Low), 1.2281 (Daily Classic R3) and 1.2275 (Hourly 20 EMA).