GBP/USD extends retreat from weekly tops, back below 1.23

The pound is seen reversing a part of the overnight rally against its American counterpart, now pushing GBP/USD further below 1.23 handle.

The cable rallied as high as 1.2309 in early Asia, although failed to sustain the upmove above 1.23  handle and turned lower to now trade around 1.2280, still up +0.15% on the day.

The spot ran through fresh offers last hours, as the greenback picked-up significant strength across the board and staged a solid pullback versus its major peers, in response to improving risk sentiment.

The GBP markets will continue to get influenced by the risk trends and USD dynamics ahead of the UK housing data and US Chicago PMI numbers, which will wrap pre-New Year week.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2309 (weekly high), 1.2350 (psychological levels) and 1.2379 (Dec 22 high). While supports are seen at 1.2266 (5-DMA) and 1.2200 (round figure) and below that at 1.2141 (Oct 31 low).