GBP/USD rebounds from 1.2210, UK GDP supports

The GBP/USD pair quickly faded the UK GDP-led upward spike and fell sharply to 1.2210 region, before recovering some ground to now trade near pre-GDP release levels.  

GBP/USD volatile on 1.22 handle

The cable witnesses a volatile European session so far, and now regains some strength in a bid to reclaim 1.2250 levels, as the sentiment remains buoyed by upbeat UK GDP and CBI realized sales data published last hours.

Moreover, the recovery in the major from near 1.22 handle post-UK GDP gained further traction amid subdued trading activity seen behind the US dollar against its major peers. Markets refrain from creating any fresh USD position ahead of the US macro updates due on the cards in the NA session today.

Meanwhile, markets digest the latest comments from the UK finance minister Hammond, noting that, “the GBP decline means that the inflationary pressures will come through.”

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2271 (daily high), 1.2300 (Oct 20 high) and 1.2334 (Oct 19 high). While supports are lined up at 1.2201 (daily low) and 1.2150 (psychological levels and below that at 1.2134 (Oct 17 low).