GBP/USD bounces-off 1.2310 on UK PM May’s remarks

The GBP/USD pair witnessed volatile trades over the last hour, dropping more-than 50-pips to hit daily lows of 1.2313, before recovering ground to revert towards the familiar range near 1.2330 region.

GBP/USD bounces-off lows on optimistic UK PM May

The major attempts a quick recovery from session troughs, as the bulls cheer UK PM May’s optimistic remarks on the Brexit process and her commitment to provide more Brexit-related information to the UK business, enabling a smooth transition for the business in the UK for the long-term.

The latest leg higher in the cable is also driven by a renewed bout of risk-on trades, in response to a minor-recovery seen in the European stocks as oil prices accelerate gains and underpin the sentiment around the resource-heavy FTSE 100 index.

The spot is last seen exchanging hands at 1.2336, down -0.07% on the day, having posted a daily high of 1.2365 and day’s low at 1.2313.

Markets digest the latest comments from the UK PM Theresa May, as attention now turns towards the UK Treasury’s Autumn Forecast Statement and FOMC minutes due to be published in the weak ahead.

GBP/USD Levels to consider            

At 1.2420, the pair finds immediate resistances placed at 1.2365/72 (daily high/ 5-DMA), 1.2400/10 (round figure/ 20-DMA) and 1.2455 (10-DMA). While supports are lined up at 1.2313 (daily low) and 1.2300 (daily S2) and below that at 1.2218 (Nov 2 low).

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