GBP/USD losing the grip near 1.2500

The Sterling is alternating gains with losses vs. the greenback on Wednesday, with GBP/USD managing well so far to keep the trade above the 1.2500 handle.

GBP/USD retreats from highs

After climbing as high as the 1.2540/45 band in early trade, the pair’s upside seems to have run out of steam, deflating to the current area although keeping the 1.2500 mark ahead of the opening bell in Euroland.

The persistent offered bias around the US Dollar has been an important driver in the ongoing recovery beyond 1.2500 the figure. In addition, the recent conciliatory tone from UK’s PM Theresa May coupled with the decision of the Supreme Court has alleviated concerns over a ‘hard Brexit’ scenario, adding to the buying interest around GBP.

Recall that the UK Supreme Court has ruled on Tuesday that the government needs parliamentary approval to trigger Article 50.

Data wise in the UK, CBI Industrial Trends Orders are due later ahead of tomorrow’s more relevant preliminary GDP figures for the fourth quarter.

GBP/USD levels to consider

As of writing the pair is losing 0.09% at 1.2510 facing the next support at 1.2416 (55-day sma) followed by 1.2352 (low Jan.16) and finally 1.2302 (20-day sma). On the upside, a break above 1.2546 (high Jan.23) would open the door to 1.2729 (high Dec.13) and then 1.2776 (high Dec.6).