GBP/USD reverses previous day’s losses

GBP/USD managed to reverse the previous day losses, when Cable fell to its lowest level since the Brexit vote without a clear catalyst.

GBP/USD fell more than 150 pips on Tuesday and bottomed out at 1.2081 before finding support. The pair managed to take back the lost ground over the last sessions and recently reached a daily high of 1.2243. It was last trading around 1.2225, up % on the day and back at Tuesday’s opening levels.

On the data front, US data came in mixed. Services PMI gauged by Markit rose to 54.8 in October, according to a preliminary estimate, above the 52.3 of consensus and expected. Meanwhile, US new home sales increased 3.1% in September from the prior month to a seasonally adjusted annual rate of 593,000 but stood below the 600,000 expected.

GBP/USD levels to consider

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 1.2259 (Oct 21 high) and 1.2297/1.2300 (Oct 20 high/psychological level) and 1.2330 (Oct 19 high).