GBP/USD attempts another run towards 1.25 ahead of UK jobs

Having peaked near 5-DMA (1.2520) in the overnight trades, the GBP/USD pair fell sharply to 1.2440 region, before recovering some ground to now march back towards 1.25 handle.

GBP/USD tests 10-DMA at 1.2483

The major stalled its two-day declines and stages a minor-bounce in a quiet Asian session today, deriving support from broad based downward correction in the US dollar, re-ignited by a sell-off in the treasury yields as Trump’s presidency-led optimism fades. Meanwhile, the cable is last seen exchanging hands at session highs of 1.2481 levels, up 0.20%, looking to regain 1.2500 levels.

On Tuesday, the cable received double blow and dropped sharply below 1.24 handle, after BOE Governor Carney played down inflation expectations on one hand, while dismal UK CPI figures also weighed on the sentiment on the other hand. Further, upbeat US retail sales data also exacerbated the pain in the GBP/USD pair.

Looking ahead, the major awaits the UK jobs report, US PPI and industrial production data due later on Wednesday for fresh incentives.

GBP/USD Levels to consider            

At 1.2473, the pair finds immediate resistances placed at 1.2500 (zero figure), 1.2520 (d5-DMA) and 1.2550 (psychological levels). While supports are lined up at 1.2400 (round figure) and 1.2379 (20-DMA) and below that at 1.2349 (Nov 9 low).

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