GBP/USD clings to gains below 1.25 ahead of data

The Sterling is trading on a firm note during the second half of the week, taking GBP/USD to the upper end of the range just below the key 1.2500 barrier.

GBP/USD focus on UK docket

Spot is advancing for the second session in a row on Friday, although another test of the 1.2500 handle appears still elusive for GBP-bulls.

The pair has gained over a cent since Wednesday’s drop to the vicinity of 1.2370 despite the persistent buying interest surrounding the greenback.

With Article 50 officially triggered, GBP should now focus on the back-and-forth of the negotiations (particularly regarding trade agreements) and the economic outlook following the divorce from the EU. In  addition, market participants would closely follow any change of the tone from the BoE, especially following the latest meeting, where MPC members showed the first split vote since July 2015.

Data wise in the UK, Q4 GDP figures, Current Account results and Business Investment are due later. Across the pond, inflation figures tracked by the PCE, Consumer Income/Spending, the Chicago PMI and the final Reuters/Michigan results are also expected along with speeches by Minneapolis Fed N.Kashkari (voter, dovish) and St. Louis Fed J.Bullard (2019 voter, centrist).

GBP/USD levels to consider

As of writing the pair is up 0.13% at 1.2485 and a breakout of 1.2529 (high Mar.30) would aim for 1.2618 (high Mar.27) and finally 1.2664 (200-day sma). On the other hand, the next support aligns at 1.2419 (55-day sma) followed by 1.2401 (low Mar.30) and then 1.2375 (low Mar.29).