GBP/USD bounces-back to 1.2200, Fed speaks in focus

The GBP/USD pair stalled its retreat and now makes minor-recovery attempts to reclaim 1.22 handle as the USD buying loses steam across the board.

GBP/USD finds support near 1.2185

The cable remains in the red zone, although trims losses as the sentiment towards the US dollar soured after reports hit the wires that the Chinese state banks are selling dollar, sending the USD index slightly off eight-month tops.

Moreover, a tepid bounce in oil prices combined mostly higher Asian equities, point towards improving risk environment, thus, aiding the recovery in the higher-yielding currency GBP.

The immediate focus now remains on the Fedspeaks and US flash manufacturing PMI in absence of relevant events from the UK docket today. While the BOE Carney’s speech and GDP figured from both economies will hog the limelight later this week.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2228/29 (daily high/ 10-DMA), 1.2263 (Oct 21 high) and 1.2300 (Oct 20 high). While supports are lined up at 1.2185 (daily low) and 1.2134 (Oct 17 low) and below that at 1.2100 (round figure).