GBP/USD attempts a rebound to 1.2450

GBP/USD is now attempting to regain the 1.2450 area, although the bearish note surrounding the Sterling remains well unchanged.

GBP/USD reverts the ‘flash crash’, capped by 1.2480

In spite of the ‘flash crash’ in GBP seen during overnight trade, spot has so far managed to retake the 1.2400 handle and above, although gains appear so far limited to the 1.2480 area for the time being.

Poor results from UK’s manufacturing and services sectors added to GBP-selling, while disappointing Payrolls figures in the US economy lent some support to the pair via a weaker dollar.

Further news noted that Governor M.Carney asked the BIS markets committee to look into the circumstances of the earlier ‘flash crash’ in Sterling.

GBP/USD levels to consider

As of writing the pair is losing 1.36% at 1.2445 with the next support at 1.1841 (low Oct.7). On the flip side, a breakout of 1.2772 (high Oct.5) would expose 1.2920 (near term resistance line) and finally 1.2972 (20-day sma).