GBP/USD fades upbeat UK data-led spike

The GBP/USD pair faded upbeat UK economic data bullish spike and is now heading back towards the lower end of daily trading range. 

Currently trading around 1.2255 region, the pair remained under some selling pressure for the fifth consecutive session. The pair's attempted a recovery from 7-week lows, in wake of better-than-expected final UK Q3 GDP and current account deficit readings, turned out to be short-lived amid renewed 'hard Brexit' concerns and mild US Dollar pull-back from lower levels. 

The UK Q3 GDP final arrived at 0.6% q/q vs 0.5% and 0.5% previous, while the current account deficit shrunk in Q3, coming in at £-25.5bln versus £-28.3bln expected, but failed to provide any immediate respite for the bulls. 

Later during NA session, new home sales data and revised UoM consumer sentiment index would now be looked upon for some short-term trading opportunities.

Technical levels to watch

Failure to hold session low support near 1.2245-40 region is likely to accelerate the slide towards 1.2200 handle before heading towards testing 1.2160 support area. On the upside, 1.2280 level now becomes immediate resistance and is followed by resistance near 1.2310-15 region. Momentum above 1.2310-15 resistance could get extended but might now be capped at 50-day SMA resistance near 1.2400 handle.