GBP/USD jumps-off 7-week lows, re-takes 1.23 ahead of UK GDP

Having bottomed at seven-week troughs of 1.2271 in early Asia, the GBP/USD pair extends its minor-recovery attempt into Europe amid persistent softness seen behind the greenback across the board, in wake of falling shorter-duration treasury yields. The 2-year treasury yields slump -0.63% to trade around 1.196%.

Moreover, the GBP remains bid on expectations of upbeat UK current account data and in-line with forecasts final GDP figures, which may drive the recovery in cable beyond 1.23 handle.

Meanwhile, markets shrugged-off a series of mixed US economic data, and hence, it remains to be seen whether today’s US new home sales and consumer sentiment data make an impact on the USD price-action, as light trading extends in wake of pre-Christmas holiday season lull.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2300 (round figure), 1.2338 (5-DMA) and 1.2379 (Dec 22 high). While supports are seen at 1.2271 (multi-week low) and 1.2250 (psychological levels) and below that at 1.2206 (daily S2).