GBP/USD quiet below 1.2300 handle

The GBP/USD pair remained confined in a narrow 20-25 pips trading range and is now heading towards the top end of daily trading range. 

Currently hovering around 1.2275-80 region, the pair was seen attempting to build on Monday’s tepid recovery bounce from a seven-week low touched last week. The recovery, however, lacked momentum amid holiday-thinned trading condition and the pair remained below 1.2300 handle. 

With UK markets closed on account of Christmas celebrations, broader sentiment surrounding the greenback would remain the sole driver for the pair's movement on Tuesday. Later during NA session, the release of the Conference Board's consumer confidence index might provide some impetus for short-term traders. 

Technical levels to watch

Recovery momentum above 1.2300 handle seems to boost the pair towards previous support break-point now turned resistance near 1.2320-25 horizontal resistance. A convincing move above 1.230-25 resistance would open room for additional recovery towards 1.2400 round figure mark.

Conversely, renewed weakness below 1.2250 immediate support, leading to a break below multi-week lows support near 1.2230 region, now seems to accelerate the slide towards 1.2200 handle below which the pair is likely to turn vulnerable to head back towards 1.2100 round figure mark, with 1.2160-50 region acting as intermediate support.