GBP/USD bounces off lows, looks to regain 1.2200

After bottoming out in the 1.2160 region, GBP/USD has managed to grab some buying interest and is now approaching the key barrier at 1.2200 the figure.

GBP/USD supported at 1.2080

Following Friday’s GBP ‘flash crash’, the pair seems to have found some decent support at weekly lows in the 1.2080 region (Tuesday), sharply rebounding in response to ‘Brexit’ comments by UK PM T.May the following day albeit the upside run out of legs around 1.2330.

The ongoing rally in the greenback continues to weigh on spot and remains the other key driver for the pair’s price action apart from ‘Brexit’ developments. USD keeps its bid tone backed exclusively by growing expectations of a Fed’s rate hike likely to be announced at the December meeting.

In the data space, nothing scheduled in the UK will prompt investors to look to the other side of the Atlantic for today’s events: US Initial Claims, Import/Export Prices and the speech by Philly Fed P.Harker (2017 voter, hawkish) on Economic Outlook.

GBP/USD levels to consider

As of writing the pair is losing 0.08% at 1.2184 and a break below 1.2086 (low Oct.11) would expose 1.1450 (low post-‘flash crash’ Oct.7). On the other hand, the next resistance aligns at 1.2761 (high pre-‘flash crash’ Oct.7) followed by 1.2765 (20-day sma) and then 1.2886 (near term resistance line).