GBP/USD: recovery above 1.2200 handle seems short-lived

Having posted a session low at 1.2133, the GBP/USD pair managed to recover the lost ground and jumped back above 1.2200 handle before quickly retracing back to currently trade around 1.2190 level. 

The pair’s recovery momentum from session through lacked follow through buying interest as news report that Scottish government holding a second independence referendum and sour sentiment around European equity markets supported safe-haven appeal of the US Dollar. 

With little in-term any fresh fundamental development / economic releases, a broad based greenback retracement from multi-month highs, as measured by the overall US Dollar Index, had been the sole contributor of the pair's recovery from session low.

Looking forward, the weekly jobless claims data from the US, slated for release later during NA session, might provide some impetus for short-term traders ahead of US monthly retail sales data on Friday.

Technical levels to watch

A follow through buying interest might assist the pair further towards a short-term descending trend-channel resistance near 1.2250-60 region, which if cleared might negate any near-term bearish bias and lift the pair immediately towards 1.2300 handle.

On the downside, renewed weakness below 1.2165-60 horizontal support might now drag the pair below session low support near 1.2130 region towards testing its next major support near 1.2100 handle.