GBP/USD bounces-off 1.2400 amid stalled USD buying

The GBP/USD pair reversed a sharp downward spike to just ahead of 1.24 handle and now looks to retest hourly 200-SMA barrier located near 1.2440 region.

GBP/USD tracks USD price-action

Amid a lack of fresh economic fundamentals from the UK docket, the cable is closely seen following the price-action seen in the US dollar against its major peers, with the major reversing a dip to lows, just as the USD index fades a spike to fresh multi-year highs reached above 102 handle.

However, the recovery once again faces stiff resistance near 1.2440 region, as sellers keeping lurking amid concerns over ballooning UK budget deficit, as reflected in yesterday’s UK Autumn Statement and resurgence of Brexit-related concerns.

Attention now turns towards the UK second estimate GDP release due tomorrow, as the economic calendar remains almost data-empty today on account of a National Holiday in the US.

GBP/USD Levels to consider            

At 1.2431, the pair finds immediate resistances placed at 1.2441/48 (1h 200-SMA/ 20-DMA), 1.2487 (daily R1) and 1.2514 (Nov 21 & 22 high). While supports are lined up at 1.2400 (zero figure) and 1.2381 (Nov 22 low) and below that at 1.2308 (Nov 21 low).

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