GBP/USD flirting with highs near 1.2450

The Sterling seems to have recovered the smile on Tuesday, now lifting GBP/USD back above the mid-1.2400s, or session tops.

GBP/USD focus on US GDP, Trump

The pair is reverting two consecutive sessions with losses today, advancing to the area of daily highs in the vicinity of 1.245o amidst a softer tone in the greenback.

GBP has regained the 1.2400 handle after a brief drop to fresh lows near 1.2380 at the beginning of the week in response to the re-emergence of Brexit concerns.

Furthermore, the House of Lords voted 299 to 136 against an amendment to the Brexit bill, demanding at the same time that the country stays a member of the European single market. It is worth recalling that PM Theresa May expects to trigger Article 50 at some point in late March.

Nothing scheduled in the UK docket today should leave all the attention to Trump’s SOTU speech in the European night, while advanced Q4 GDP figures, the S&P/Case-Shiller Index, Trade Balance results, Chicago PMI and CB’s Consumer Confidence are all due in the US docket.

Additionally, Philly Fed P.Harker (voter, hawkish) and San Francisco Fed J.Williams (2018 voter, neutral) are due to speak later in the NA session.

GBP/USD levels to consider

As of writing the pair is up 0.03% at 1.2445 facing the next hurdle at 1.2486 (high Feb.27) followed by 1.2492 (20-day sma ) and finally 1.2572 (high Feb.24). On the flip side, a break below 1.2382 (low Feb.27) would aim for 1.2379 (low Feb.15) and finally 1.2344 (low Feb.7).