GBP/USD reverses and rises back above 1.2200

GBP/USD erased losses in a few minutes and rose above 1.2200. The pair was trading near the 1.2150 area and jumped to 1.2222, hitting the highest level since last Thursday. It was trading at 1.2205, less than 30 pips above Friday’s closing price. 

The greenback dropped across the board during the last hour, trimming gains. The pound was on the opposite side and gained momentum; hitting a fresh high versus the euro and commodity currencies. 

Carney with support 

During the weekend there were speculations about the future of Mark Carney as governor of the Bank of England. Today, PM May’s spokeswoman said that the MP would support Carney if he decided to serve until 2021. 

Regarding the central bank, on Thursday the BoE will announce its decision on monetary policy and will also release the minutes and the Quarterly Inflation Report. 

GBP/USD technical levels 

To the upside, resistance levels might lie at 1.2220/25 (daily high), 1.2250 (Oct 24 & 26 high) and 1.2300 (psychological). On the opposite direction, support could be located at 1.2180 (20-hour moving average), 1.2140/45 (daily low) and 1.2110 (Oct 28 low).