GBP/USD reverses tepid recovery gains, back below 1.2400 handle

The GBP/USD pair faded its attempted recovery spike to 1.2440 and is now fast approaching session low touched during early Asian session on Monday.

Currently trading around 1.2385-90 band, the pair ran through fresh offers at higher level amid renewed buying interest around the greenback, which continues to benefit from Cleveland Fed President Loretta Mester's comments on Friday that kept alive hopes of an eventual Fed rate-hike before the end of this year. 

Meanwhile, today's comments from UK Prime Minister Theresa May's spokesperson that there was no definite cause of the Friday's flash crash in the British Pound extended little support to the bulls and the pair extended its near-term downward trajectory, amid subdued trading action led by US bank holiday in observance of Columbus Day.

Technical levels to watch

On a sustained weakness below 1.2390-80 area, the pair is likely to head back towards 1.2300 handle, which if broken is likely to turn the pair vulnerable to extend its slide further towards 1.2200-1.2190 support area.

On the flip side, recovery momentum above session high resistance near 1.2440 region is likely to get extended towards 1.2475-80 hurdle, which if cleared has the potential to boost the pair further towards 1.2600 handle in the near-term.