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GBP/USD bulls are fighting the bearish odds, re-attempting the upside.

GBP/USD is moving back and forth in a 40-pips narrow range so far this Friday, now attempting another bounce towards 1.2300.

The renewed upside in the major is fuelled by a bout of weakness seen in the US dollar across its main peers, as risk sentiment receives a fresh boost. Easing rate hike expectations from the ECB and BOE amid increasing recession risks is helping calm the market nerves.

Bulls, however, could face a hard time extending the latest uptick, as the UK political jitters remain in play. A senior Tory party member resigned after the ruling Conservative Party lost two crucial seats in the parliamentary by-elections on Friday. The latest news put PM Johnson’s leadership in jeopardy, which could undermine the sterling’s upswing.

Attention now turns towards the two-tier data from the US for fresh trading impetus, as risk sentiment is likely to lead the way into the weekly close.

Ahead of that, the 1.2300 round figure will offer stiff resistance to GBP buyers. The Relative Strength Index (RSI) is pointing higher above the midline, allowing room for more upside.

On the flip side, the immediate support is now seen at the 21 SMA at 1.2256, below which a sharp drop towards the mildly bullish 50 SMA at 1.2214 will be in the offing.The next stop for sellers will be seen at the 1.2200 demand area on increased downside pressure.

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EUR/USD News 

GBP/USD retreats from 1.2300 as dollar gathers strength

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GBP/USD News 

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