GBP/USD firmer, but still below 1.2300

Having faced rejection once again just shy of 1.23 handle, the pound is seen in a brief consolidation phase, as the bulls continue its struggle to take-out the last.

The cable, however, keeps the overnight recovery mode intact after having found strong bids at daily pivot, as broad based US dollar retreat underpins. While falling treasury yields boost the demand for sterling as an alternative higher yielding currency,

The spot is currently meandering near 1.2290, having posted day’s low at 1.2266 and day’ high at 1.2294. Light trading is likely to extend for the third straight session this week, as investors remain on the side-lines in wake of the Christmas week and New-Year holiday season.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2300 (round number), 1.2332 (10-DMA) and 1.2379 (Dec 22 high). While supports are seen at 1.2257 (Dec 26 low) and 1.2226 (multi-week low) and below that at 1.2141 (Oct 31 low).