GBP/USD bounces off session low, reclaims 1.2400 handle

Having posted a session low near 1.2380 region, the GBP/USD pair managed to recover lost ground and has now moved back above 1.2400 handle.

Currently trading near session peak, around 1.2415 level, the pair is attempting to build on to its recovery momentum despite of broad based US Dollar strength, which continues to gain traction after the Fed Chair, during her testimony on Thursday, reaffirmed market expectations of December Fed rate-hike action. 

In absence of any market moving economic releases, the current leg of recovery could be attributed to short-covering ahead of central bank speakers, including MPC member Ben Broadbent followed by speech from FOMC member James Bullard. Later during NY session, speeches from FOMC members William Dudley and Esther George would be looked upon for clues over the Fed's next monetary policy action and provide fresh impetus for the major.

Technical levels to watch

Further recovery from current levels is likely to confront resistance near 1.2440 level above which the pair is likely to make a fresh attempt towards reclaiming 1.2500 psychological mark and aim towards testing 50-day SMA resistance near 1.2580 region. On the downside, weakness below 1.2380 (session low) is likely to find support at 20-day SMA near 1.2365 region, which if broken would trigger a fresh leg of weakness and drag the pair below 1.2300 handle towards testing a short-term ascending trend-channel support near 1.2240-35 region.