GBP/USD rises toward 1.2200, but lacks momentum

GBP/USD has risen toward the upper-side of today’s range but overall remains little changed on the day, with concerns over a hard Brexit keeping the upside limited.

Nevertheless, GBP/USD managed to recover from a daily low of 1.2135 and rose toward the 1.2190 zone during the American session, lacking follow through to challenge the 1.22 mark. At time of writing, GBP/USD is trading at 1.2185, just a few pips below its Friday’s close.

The dollar retreated across the board following a string of lackluster US data. Industrial production rose a seasonally adjusted 0.1% in September, matching expectations, after dropping 0.5% in August. Previously, the NY Empire State index has dropped to -6.8 for the month of October, well below the 1.0 of consensus.

GBP/USD levels to consider

In terms of technical levels, next supports could be faced at 1.2132 (Oct 13 low), 1.2104 (Oct 12 low) and 1.2088 (Oct 11 low). On the flip side, resistances are seen at 1.2271 (Oct 13 high), 1.2323 (Oct 12 high) and 1.2400 (psychological level).