GBP/USD: Upside remains capped just ahead of 1.2200

The GBP/USD pair continues to meet fresh supply on every attempt to rise above 1.22 handle so far this session, as persistent risk-off trades curb the demand for risk currencies such as the pound.

GBP/USD back on 1.21 handle

The cable is seen consolidating the retreat from 1.2260 levels and now remains capped by 1.22 handle amid wide-spread risk-aversion, refueled by weak Chinese trade report. The major is last seen exchanging hands at 1.2182 levels, now recording a -0.10% loss on the day.

However, the downside appears cushioned on the back of fresh selling witnessed in the US dollar against its main rivals last hour, knocking-off the USD index to 97.85 levels, down -0.14% so far.

Looking ahead, the UK docket remains absolutely data-empty and hence, all eyes remain on the US jobless claims and EIA crude stockpiles data lined up for release later in the American session for further impetus on the spot.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2260/63 (NY high/ 5-DMA), 1.2300 (round number) and 1.2324 (daily R1). While supports are lined up at 1.2161 (daily low) and 1.2106 (Oct 12 low) and below that at 1.2086 (Oct 11 low).