GBP/USD: US data keeping bulls in check with price on the rebound

Currently, GBP/USD is trading at 1.2263, down -0.20% on the day, having posted a daily high at 1.2309 and low at 1.2199.

GBP/USD has been testing below 1.22 on the back of traders piling into a foregone conclusion that is the dollar will remain string in the short term with many risks associated to the pound and Brexit, Trump and the European elections this year. Interest rates are driving the price and indeed momentum will be key this year, especially with algos backing the bid in the dollar and ahead of the market in that respect. Today's ISM data for US manufacturing has propelled buying interest from the market and is keeping a lid on any corrections in cable for time being.  

ISM adds case for strong dollar Q1 2017 - ING

GBP/USD levels

Spot is presently trading at 1.2264, and next resistance can be seen at 1.2278 (Yesterday's Low), 1.2279 (Hourly 100 SMA), 1.2280 (Hourly 20 EMA), 1.2283 (Hourly 200 SMA) and 1.2286 (Daily Open). Support below can be found at 1.2258 (Daily Classic S1), 1.2229 (Daily Classic S2), 1.2221 (Weekly Classic S1), 1.2219 (Monthly Low) and 1.2219 (Weekly Low).