GBP/USD bounces from below 1.2100, takes back losses

The pound crumbled on Tuesday and dropped briefly below the 1.21 mark to hit its lowest level since the Brexit vote as the greenback gathered pace across the board.

GBP/USD however, found support and managed to take back losses over the last hours. GBP/USD bounced from a low of 1.2081 and climbed back to the 1.2160 area in recent dealings. At time of writing, the pair is trading at 1.2155, still down 0.66% on the day.

Meanwhile, BoE Governor Mark Carney was speaking. Among other remarks, he stated the Bank is not indifferent to FX rates. He also said they will not depend purely on QE if more stimulus is needed as they have a range of options. 

GBP/USD levels to watch

As for technical levels, next supports are seen at 1.2081 (Oct 25 low) and 1.2000 (psychological level). On the other hand, resistances could be found at 1.2226 (10-day SMA), 1.2242 (Oct 25 high) and 1.2297/1.2300 (Oct 20 high/psychological level).