GBP/USD supported at 1.2200, UK GDP in focus

Dhwani Mehta FXStreet

The GBP/USD pair retraced almost a quarter of yesterday’s rally, although found support just ahead of 22 handle amid a broadly higher greenback and widespread risk-aversion.

GBP/USD hovers below 5-DMA

The cable’s recovery from below 1.21 handle faltered at the mid-point of 1.2250 levels, and knocked-off the rate back to 1.22 handle, before meeting some fresh buying interest near the last to now trade around 1.2220 levels.

The bulls appeared rescued by a minor-recovery seen in oil prices, while a retreat in the USD index from session tops also offered some respite to GBP/USD. The USD index, which gauges greenback’s relative strength, now trades +0.07% higher at 98.65, down from 98.75 highs.

The weakness around the spot is also in anticipation of a weaker UK prelim GDP print, with markets expecting the GDP figures to come in at +0.3% in Q3 versus a stellar +0.7% booked previously.

GBP/USD Levels to consider

The pair finds immediate resistances placed at 1.2236 (10-DMA), 1.2263 (Oct 21 high) and 1.2300 (Oct 20 high). While supports are lined up at 1.2183 (daily S1) and 1.2150 (psychological levels and below that at 1.2134 (Oct 17 low).

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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