GBP/USD fails to sustain gains, falls toward 1.2200

GBP/USD pulled back from daily highs and slid back into negative ground for the day as the dollar, that continues to trade mixed across the board, strengthened aganst the pound during the New York session.

GBP/USD found resistance after hitting a high of 1.2248, and following a sideways phase, it came under renews pressure, falling toward the 1.2200 area. Cable was last trading at 1.2203, down 0.17% on the day.

On the data front, the release of the CBI quarterly industrial trends survey in teh UK, showed that manufacturing output and orders grew over the last quarter, with export volumes growth being the strongest in over two and half years, due to a weaker Pound. In the US, the Chicago Fed National Activity Index (CFNAI) increased to -0.14 in September from -0.72 in August.

GBP/USD levels to watch

As for technical levels, next supports could be found at 1.2170 (Oct 21 low), 1.2135 (Oct 17 low) and 1.2088 (Oct 11 low). On the flip side, resistances are seen at 1.2248/59 (Oct 24 & 21 highs), 1.2300 (psychological level) and 1.2330 (Oct 19 high).