GBP/USD: Bears target 1.2500 amid tumbling UK yields
|The GBP/USD pair reversed rapidly from fresh two-week highs (1.2571), and is now seen printing fresh daily lows at 1.2525 levels.
The latest leg lower in cable can be mainly attributed to the yield differential between the 10-year UK Gilts yields and treasury yields, which tilt in favor of the US dollar. The UK yields remain under pressure on account of the impending concerns surrounding the Article 50 trigger.
The US dollar index, which measures greenback’s strength against a basket of six major currencies, staged a bounce from daily lows of 100.81 and reverts to the familiar range near 100.95 region.
Meanwhile, the GBP markets ignore the second-liner UK BBA mortgage approvals data, which arrived at 44.7k versus 42k expectations. All eyes now remain on the US datasets for fresh incentive on the pair.
GBP/USD Levels to consider
The supports are aligned at 1.2514 (daily pivot) and 1.2496 (5-DMA) and below that at 1.2474 (10-DMA). On the flip side, the upside barriers are lined up at 1.2571 (2-week high) and 1.2600 (zero figure) and below that at 1.2651 (daily R2).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.