GBP/USD off 2-week highs, flirts with 1.2500

The GBP/USD pair is seen wavering in a tight range above 1.25 handle, after having faced rejection near more-than one-week highs, as markets await fresh impetus from the sentiment on the European open.

GBP/USD consolidates in early Europe

The cable is seen consolidating the Asian move higher to more-than one week tops, with the bulls defending 1.25 handle amid a broadly lower US dollar and stalled selling in oil prices.

Amid a data-empty US and UK calendars today, focus will remain on the oil price-action amid OPEC output cut deal-related news flow, which will have a significant impact on risk sentiment as well as on higher-yielding currencies such as the GBP.

Additionally, cross-driven moves on the spot, particularly EUR/GBP dynamics, will be closely eyed amid month-end flows spread over the next few days, while Wednesday’s OPEC decision and Thursday’s BOE Financial Stability report and bank stress results will also remain in focus.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2532 (2-week highs), 1.2600 (round number) and 1.2675 (Nov high). While supports are seen at 1.2471 (5-DMA) and 1.2436 (10-DMA) and below that at 1.2393 (50-DMA).

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