GBP/USD drops back below 1.2200

GBP/USD failed to hold to gains and is back below the 1.2200 area after the US dollar regained momentum in the currency market. Cable peaked at 1.2260 before the release of US data but then turned again to the downside. Still remains above daily lows. 

Economic data in the US included retail sales, PPI, and consumer confidence. Overall, wholesale inflation showed no surprise, retail sales rebounded and consumer confidence dropped to the lowest in months. Greenback was modestly affected by the economic numbers. 

Th pair has fallen back under 1.2200 and dropped to 1.2180 and it was trading at 1.2185, 60 pips below yesterday’s closing price. It continues to move in the 1.2270/1.2170 range. 

Technical levels 

To the upside, resistance levels might now be seen at 1.2220 (20-hour moving average), 1.2260 (daily high) and 1.2325 (Oct 12 high). On the opposite direction, support could be located at 1.2165 (daily low), 1.2130 (Oct 13 low) and 1.2085 (Oct 11 low).