GBP/USD cut losses to 1.2230 ahead of Carney

The Sterling keeps trading within a very narrow range vs. the greenback during the first half of the week, sending GBP/USD to the 1.2220/30 band.

GBP/USD focus on Carney, Brexit

Although it manages well to remain above the key 1.2200 handle vs. the greenback, further GBP gains appear so far limited around the 1.2330 area while decent support seems to have emerged near 1.2080 post-‘flash crash’.

The USD-dynamics seems to have returned as the main drivers behind the pair’s price action, as ‘hard Brexit’ fears appear somewhat mitigated for the time being.

Anyway, today’s speech by Governor M.Carney on the economic consequences of Brexit before the House of Lords Economic Committee carries the potential to bring in some volatility around the British pound.

On the US data front, the S&P/Case-Shiller index is due followed by the IBD/TIPP Economic Optimism index and CB’s Consumer Confidence for the month of October.

GBP/USD levels to consider

As of writing the pair is losing 0.09% at 1.2228 facing the immediate support at 1.2086 (low Oct.11) followed by 1.1450 (low post-‘flash crash’ Oct.7). On the other hand, a break above 1.2327 (high Oct.18) would expose 1.2377 (high Oct.11) and finally 1.2420 (20-day sma).