GBP/USD rejected at 5-DMA, but keeps 1.2400

The GBP/USD pair traded quite choppy so far this session, initially spiking to 1.2440 levels in early Asia, before meeting fresh supply, which knocked-off the rate back to daily lows just ahead of 1.24 handle. The spot is last see exchanging hands at 1.2418, up +0.08% on the day.  

The major looks vulnerable, as the pound remains exposed to further downside risks ahead of the House of Lords to debate UK PM May’s Brexit plan due later in the week. While last week’s disappointing UK retail sales, jobs and CPI continue weigh on investors’ minds.

Looking ahead, in absence of key macro events from both the UK and US today, attention turns towards the UK GDP figures and Fedspeaks due on the cards later this week. The US markets are closed today in observance of Presidents’ Day.

GBP/USD Levels to consider            

The upside barriers are lined up at 1.2441/42 (daily high/ 5-DMA), 1.2468 (10-DMA) and 1.2500 (round figure). While supports are aligned at 1.2400 (key support) and 1.2389 (50-DMA) and below that at 1.2344 (Feb 7 low).