GBP/USD off-lows, still below 5-DMA

The US dollar retreat sharply from 4-day tops against its main peers, prompting a tepid-bounce in the GBP/USD pair from session lows of 1.2531.

GBP/USD appears to have stalled its Asian decline, and now looks to consolidate steep losses, as the bulls find support from the UK finance minister Hammond’s comments delivered over the last hour. Mr. Hammond noted the UK remains a "fully engaged member of the EU."

Markets now eagerly await the US economic releases for fresh impetus on the greenback, eventually impacting GBP/USD. The US Q4 GDP figures are likely to hog the limelight among others.

GBP/USD Levels to consider            

At 1.2543, the upside barriers are lined up at 1.2609 (daily pivot), 1.2643 (Jan 25 high) and 1.2697 (Dec 1 high). While supports are aligned at 1.2500 (round number) and 1.2460 (10-DMA) and below that at 1.2404 (50-DMA).