Heading into Europe, the GBP/USD pair is seen consolidating the Asian recovery, after the bulls ran into the 200-DMA resistance located at 1.2572.
Cable remains better bid amid a better risk environment, as the Asian equities tracked the recovery in their Wall Street counterpart, boosting the demand for higher-yielding currencies such as the GBP.
More so, a minor-retreat in the US dollar versus its six major peers during the Asian hours, also provided extra legs to the renewed upside in the spot. However, over the last hour, the major is struggling to build onto the recovery gains, as markets turn cautious ahead of the historic triggering of the Article 50 by the UK PM May scheduled tomorrow.
In the meantime, all eyes remain on the US goods trade balance, consumer confidence, Richmond manufacturing index and a bevy of Fed speakers up on the rostrum later today.
GBP/USD Levels to consider
Valeria Bednarik, Chief Analyst at FXStreet explains, “The latest downward corrective movement has not been enough to confirm an interim top in the pair, as it would take a break below 1.2535, the 23.6% retracement of the January´s rally to see it falling further. In the 4 hours chart, the price is also developing above a bullish 20 SMA, whilst technical indicators have retreated within positive territory, with the Momentum nearing 100, but the RSI around 67, this last losing downward strength and pretty much indicating limited selling interest at the time being. Support levels: 1.2535 1.2500 1.2465 Resistance levels: 1.2585 1.2620 1.2660.”
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