GBP/USD continues to move up and down slightly above 1.2200. The data from the UK showed that the GDP expanded at an annual rate of 0.6% in Q3.
Although this reading exceeded the market expectation of 0.5% it failed to boost Pound Sterling.
The ascending trend line, the Fibonacci 23.6% retracement level of the latest downtrend, the 100-period Simple Moving Average (SMA) on the four-hour chart and the 200-period SMA form strong support at 1.2200. If GBP/USD falls below that level and confirms resistance, 1.2140 (static level) and 1.2100 (static level) could be set as the next bearish targets.
On the upside, 1.2250 (50-period SMA) aligns as dynamic resistance before 1.2275 (20-period SMA) and 1.2300 (Fibonacci 38.2% retracement).
