GBP/USD heading back towards session low

The GBP/USD pair extended range-bounce trading action on Tuesday and is now headed towards the lower end of daily range. 

Currently trading with mild bearish bias, around 1.2270-65 band, the pair remained below 1.2300 handle and has failed to register any meaningful recovery, albeit has held above seven-week low touched last week amid holiday-thinned dull trading conditions. 

Growing prospects of stronger US economic growth, which would lead to higher interest rates, continues to underpin the greenback and has been the key factor restricting the pair's recovery. 

Later during NA session, the release of Conference Board's consumer confidence index for December might provide some impetus for short-term traders. However, the broader trend would remain dependent on the looming Brexit concerns and market expectations of Fed's monetary policy stance in 2017. 

Technical levels to watch

On a sustained weakness below 1.2250 immediate support is likely to accelerate the slide towards 1.2220 support area below which the pair is likely to break through 1.2200 handle and head towards testing its next support near 1.2160-55 region. 

On the flip side, 1.2300 handle remains immediate strong hurdle, which if conquered might trigger short-covering bounce towards 1.2350 resistance, en-route 1.2390-1.2400 strong resistance.