GBP/USD through 1.2500 early in Europe

The British Pound is picking up pace vs. the greenback on Wednesday, taking GBP/USD to test fresh tops beyond the 1.2500 the figure.

GBP/USD focus on Brexit negotiations, US data

Spot has accelerated its upside today, looking to extend the assault to the key barrier at 1.2500 the figure as the greenback keeps showing signs of weakness.

Cable gained extra pace on Tuesday after breaking above the critical resistance line off 2017 tops beyond the 1.2700 handle seen in early February, always backed by the recent sharp sell-off in the greenback while higher-than-expected inflation figures in the UK economy lent extra legs to the up move.

No news from the Brexit-hood seems to be good news so far, as UK’s PM Theresa May is expected to trigger Article 50 by end of March, officially starting the EU-UK negotiations.

From the speculative community, GBP net shorts climbed to record levels during the week ended on March 14 as showed by the latest CFTC report, although that was probably due to hawkish bets ahead of the FOMC meeting.

Nothing scheduled today in the UK calendar, whereas Existing Home Sales and the EIA’s weekly report on crude inventories are due across the pond.

GBP/USD levels to consider

As of writing the pair is up 0.18% at 1.2502 and a breakout of 1.2572 (high Feb.24) would aim for 1.2585 (78.6% of the February-March drop) and finally 1.2715 (2017 high Feb.2). On the flip side, the next support aligns at 1.2417 (100-day sma) followed by 1.2387 (55-day sma) and then 1.2320 (20-day sma).