GBP/USD supported at 1.2200, UK GDP in focus

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).