GBP/USD: Supply capping minor-recovery near 1.2180

The GBP/USD pair is seen trading quite choppy post-European open, with the bears keeping any recovery attempt confined below 1.2180/85 band.

GBP/USD finds support near 1.2140 region

The cable keeps losses as risk-off sentiment remains at full steam amid weaker European stocks and oil prices. Higher-yielding currencies such as the GBP tend to suffer during risk-aversion, as investors give up risky bets and flee to safety assets in order to protect their capital.

Moreover, the US dollar stalls its corrective slide and swings back onto bids against major peers, which also adds to the bearish sentiment around GBP/USD. The USD index advances +0.11% to test daily tops reached at 98.12 levels.

Furthermore, steep losses seen in the GBP/JPY cross also remains a big drag on the GBP/USD pair. In the day ahead, the major will continue to get influenced by broader market sentiment in absence of relevant macro news from the UK docket, while US jobless claims will be eyed in the NA session.

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 1.2134 (daily low) and 1.2106 (Oct 12 low) and below that at 1.2086 (Oct 11 low).