GBP/USD struggles to extend the recovery above 1.2400

The bears remain in control as we head into early Europe, keeping any recovery attempt in GBP/USD short-lived above 1.24 handle.

GBP/USD: BOE and Fed speeches in focus

The major continues to trade around a flat-line in early Europe, as the pound corrects sharp declines witnessed yesterday after the demand for the US dollar returned to markets, following Yellen’s optimistic remarks. Yellen noted in her testimony that a relatively sooner rate hike is appropriate, should the incoming data add further to the signs of strengthen labor market and rising price pressures.

Markets now await the European open for fresh USD flows, while higher treasury yields continue to keep the upside in check. The spot is last seen exchanging hands at 1.2397, down -0.20% on the day.  Next in focus for the major remains BOE member Broadbent’s speech and Fed speaks scheduled later on Friday.

GBP/USD Levels to consider            

At 1.2420, the pair finds immediate resistances placed at 1.2440/43 (5-DMA/ daily pivot), 1.2472 (10-DMA) and 1.2500 (psychological levels). While supports are lined up at 1.2379 (daily S1) and 1.2349 (Nov 9 low) and below that at 1.2300 (round number).

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