GBP/USD recovery gains traction, re-takes 1.2200

The GBP/USD pair finally broke its downside consolidation phase and caught renewed bids in the European session, swinging back towards 1.22 handle.

GBP/USD supported above 1.2150 

The cable’s overnight retreat stalled near the mid-point of 1.21 handle, as the bulls find support from renewed selling in the greenback against its major counterparts.

Moreover, the European traders hit their desks and react positively to a slightly hawkish comments delivered by BOE Governor during his testimony before the House of Lords economic affairs committee yesterday.

However, the recovery attempt looks fragile amid risk-averse market conditions, as the European equities tumble alongside oil prices. The GBP/USD pair trades modestly flat at 1.2189, while the USD index drops -0.08% to 98.60 levels.

Markets now look forward to the UK BBA mortgage approvals data due later this session, while the US economic releases will be also closely eyed for further momentum on the major.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2215 (5-DMA), 1.2263 (Oct 21 high)1.2300 (Oct 20 high) and 1.2300 (Oct 20 high). While supports are lined up at 1.2150 (psychological levels) and 1.2134 (Oct 17 low) and below that at 1.2097 (daily S1).