GBP/USD firmer above 1.2200, US data eyed

The Sterling has recovered the smile on Wednesday, now sending GBP/USD to the 1.2200 neighbourhood after climbing as high as the vicinity of 1.2230.

GBP/USD supported at 1.2080, looks to US results

Spot has returned to the positive territory today after finding strong support near 1.2080 on Tuesday.

The persistent selling bias surrounding the greenback continues to give oxygen to the ongoing recovery in the risk-associated assets, although the sustainability of the rebound highly depends on the extent of the dollar’s correction.

Yesterday’s comments by Chancellor P.Hammond advocating for further QE have been behind the sharp pullback in GBP, although the subsequent speech by Governor Carney seems to have brought in some relief to the Sterling along with a weaker USD.

Later in the NA session, US Services PMI measured by Markit is due later, followed by New Home Sales and the EIA’s weekly report in crude oil inventories.

GBP/USD levels to consider

As of writing the pair is gaining 0.23% at 1.2218 and a break above 1.2327 (high Oct.18) would expose 1.2377 (high Oct.11) and finally 1.2415 (20-day sma). On the other hand, the next support lines up at 1.2086 (low Oct.11) followed by 1.1450 (low post-‘flash crash’ Oct.7).