GBP/USD: 1.2400 closer on Yellen-led USD weakness

Dhwani Mehta FXStreet

The GBP/USD pair is on a break higher from 1.2330 region, with the bulls now targeting 1.24 handle amid fresh USD selling, in wake of Fed Yellen’s latest comments.

GBP/USD looks to test 50-DMA at 1.2396

GBP/USD broke higher from a brief consolidation phase seen in early Asia and now accelerates the upside, as the greenback loses ground across the board following Fed Chair Yellen sounded less hawkish in her recent remarks, noting that it is 'prudent' to adjust the stance of monetary policy gradually.

Moreover, upbeat China Q4 GDP data combined with higher commodities’ prices added to the bullish move in the higher-yielding/ risk currency GBP. However, it remains to be seen how markets react to the Trump inauguration, with ‘Sell the fact’ likely to emerge the key theme going forward.

In the meantime, the major will get highly influenced by the UK retail sales data due to be published in the European session ahead.

GBP/USD Levels to consider

In terms of technical levels, upside barriers are lined up at 1.2396 (50-DMA), 1.2415 (100-DMA) and 1.2437 (10-day high). While supports are aligned at 1.2312 (daily pivot) and 1.2286 (5-DMA) and below that at 1.2255 (20-DMA).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.