GBP/USD extends the rebound to 1.2600, fresh 6-week tops

The US dollar ran through fresh offers across the board over the last hours, prompting a renewed uptick in GBP/USD  to test 1.26 handle. The USD index erodes 30-pips and drops sharply to hit fresh daily lows at 100.06.

The pound extends its corrective rally on risk-on trades fuelled by rallying European equities, after having witnessed more-than a big figure sell-off yesterday following the UK Supreme Court decision on Brexit, which cited the UK government requires a Parliamentary vote to trigger the Article 50 by March-end.

The immediate focus now remains on the UK CBI industrial order expectations due out shortly, while the spot is expected to remain at the mercy of USD dynamics in absence of relevant US economic events due on the cards today.

GBP/USD Levels to consider            

At 1.2595, upside barriers are lined up at 1.2625 (daily S2), 1.2650 (round figure) and 1.2697 (Dec 1 high). While supports are aligned at 1.2573 (daily R1) and 1.2550 (key support) and below that at 1.2479 (5-DMA).