GBP/USD turns lower amid broad based USD strength

The GBP/USD pair ran through fresh offers at higher level and once again faced rejection around 1.2500 psychological mark.

Currently trading at a fresh session low 1.2435 region, a fresh bout of greenback buying interest in past few hours forced the major to erase early tepid recovery gains. Moreover, the bulls seemed unimpressed with an unexpected drop in the UK unemployment rate, which got negated by higher-than-anticipated rise in the number of people claiming unemployment-related benefits and flat average earnings growth. 

From technical perspective, the pair failed to extend its recent recovery trend beyond 50-day SMA and is now trading weaker for the third consecutive session, albeit still holding within Tuesday's trading range. 

Later during NA session, BOE Deputy Governor Jon Cunliffe's speech would be looked upon for clues over the central bank's near-term monetary policy stance and could provide fresh impetus for the major. From the US, industrial production, capacity utilization rate and PPI print might also provide some short-term trading opportunities. 

Technical levels to watch

A follow through selling pressure below 1.2435-30 (session low) is likely to accelerate the slide immediately towards 1.2400 handle en-route 1.2380 (yesterday's low). On the upside, 1.2500 mark now seems to have emerged as immediate strong resistance, which if cleared is likely to boost the pair immediately towards 1.2535-40 resistance ahead of the next major resistance at 50-day SMA near 1.2600-1.2620 region.

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