GBP/USD: Recovery remains capped below 1.2550

Renewed offers seen around the greenback over the last hour help keep the GBP/USD well supported above 1.25 handle.

However, the recovery from the UK Supreme Court Brexit decision induced sell-off appears to lack follow-through, as the bears continue to guard 1.2550 barrier amid rallying Asian equities, which reduce GBP’s appeal as an alternative higher yielding asset.

In the day ahead, the major will keep a close track of the USD price-action amid a lack of significant fundamental news from both the UK and US docket. While attention gradually shifts towards the UK prelim GDP data due for release tomorrow.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2545 (5-week high), 1.2573 (daily R1) and 1.2650 (round figure). While supports are aligned at 1.2470 (5-DMA) and 1.2442 (daily S1) and below that at 1.2399/95 (50 & 100-DMA).