GBP/USD firmer, re-takes 1.2500 ahead of UK data

The GBP/USD pair is on a steady recovery path so far this session, although the bulls failed to survive above 1.25 handle, as sentiment remains subdued amid weaker commodities’ prices and mixed Asian equities.

Cable remains supported amid stalled USD buying across the board as the treasury yields remain largely suppressed, while impressive Chinese services and manufacturing reports soothed China slowdown concerns and lent support to the risk currency GBP.

Attention now turns towards fresh macro news from the UK docket, including the GDP and current account, which may provide fresh impetus on the pair. In the meantime, markets continue to cheer recent streak of positive US fundamentals, which builds the case of aggressive Fed tightening in the coming months.

Meanwhile, the US calendar also remains quite eventful, with the core PCE price index due to be reported, followed by personal spending, revised consumer sentiment and Chicago PMI. Besides, Fed officials Dudley and Kashkari are scheduled to speak later today.

GBP/USD Levels to consider            

Valeria Bednarik, Chief Analyst at FXStreet noted, “in the 4 hours chart, the pair remained below a bearish 20 SMA, with a spike beyond it being quickly reverted, while technical indicators have turned lower around their mid-lines, indicating that buying interest receded ahead of Wall Street's close. The downward potential, however, remains limited, with only a break below the 1.2330/40 region signaling a steeper decline ahead. Support levels: 1.2445 1.2400 1.2365 Resistance levels: 1.2490 1.2520 1.2560.”