GBP/USD: Recovery gains traction, nears 1.2250

The recovery in the GBP/USD pair gathered steam over the last hour, now pushing the rate close towards the mid-point of 1.22 handle.

GBP/USD jumps to tests 10-DMA  

The cable found renewed bids and erased most loses as demand for the US dollar lost strength as the UK traders hit their desks. The USD index moved further away from fresh eight-month peaks to now trade flattish near daily lows of 98.60.

Further, positive opening seen on the European markets combined with a bounce in oil prices, provided extra legs to the ongoing recovery in the major.

Meanwhile, markets digest the latest speech delivered by BOE policymaker Shafik on the ‘Monetary, Financial and Prudential Policy Interactions in the Post-Crisis World’ this Monday.

Next of note for the major remains the UK CBI industrial order expectations data ahead of the US manufacturing PMI and BOE Carney’s speech due later in the American session.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2263 (Oct 21 high), 1.2300 (Oct 20 high) and 1.2334 (Oct 19 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).