GBP/USD attempts recovery in Asia, 1.2200 eyed

The GBP/USD pair breaks its overnight bearish consolidation phase to the upside, and now looks to regain 1.22 handle as the greenback meet fresh sellers across the board.

GBP/USD approaches 5-DMA at 1.2204

The cable takes on a steady recovery mode in the Asian trades, having found strong support near 1.2150 levels, largely on the back of a fresh risk-on wave triggered by renewed buying in oil prices and higher Asian stocks.

Moreover, the US dollar extends its corrective slide versus its major peers, following yesterday’s sharp rally backed by strengthening treasury yields, also collaborated to the upbeat momentum behind the GBP/USD pair.

Looking ahead, markets eagerly await the US GDP data for next USD direction, as the data is expected to further bolster Dec Fed rate hike bets.

GBP/USD Levels to consider            

At 1.2180, the pair finds immediate resistances placed at 1.2204 (5-DMA), 1.2250 (key resistance) and 1.2300 (Oct 20 high). While supports are lined up at 1.2153 (daily low) and 1.2134 (Oct 17 low) and below that at 1.2100 (round figure).