GBP/USD sticks to 1.2200 ahead of UK GDP

The British pound is trading on the defensive on Thursday, sending GBP/USD to the lower bound of the range near 1.2210.

GBP/USD attention to UK data

The pair manages to keep the consolidative pattern within a narrow range not far from the 1.2200 handle so far this week, always against the backdrop of choppy trade and with USD-dynamics as the almost exclusive driver of the price action.

Later in the session, GBP will take centre stage in light of the release of the flash GDP figures for the third quarter and Consumer Confidence tracked by Gfk. Market consensus expects the UK economy to expand at an annualized 2.1% and 0.3% inter-quarter during the July-September period.

Across the pond, the usual weekly report on the US labour market is due along with Durable Goods Orders and Pending Home Sales.

In the meantime, the lack of a clear direction stays the leitmotif around the Sterling - at least in the near term - while the pair remains vigilant on headlines from ‘Brexit’ and occasional BoE-speak.

GBP/USD levels to consider

As of writing the pair is losing 0.19% at 1.2222 facing the immediate support at 1.2086 (low Oct.11) followed by 1.1450 (low post-‘flash crash’ Oct.7). On the other hand, a break above 1.2327 (high Oct.18) would expose 1.2377 (high Oct.11) and finally 1.2382 (20-day sma).