GBP/USD consolidating the bid and dollar weakness through 1.2500

Ross J Burland FXStreet

Currently, GBP/USD is trading at 1.2543, up 0.67% on the day, having posted a daily high at 1.2562 and low at 1.2427.

Market wrap: mixed day with weaker dollar, higher stocks - Westpac

GBP/USD is consolidating the bid from 1.2450 to aforementioned highs that were scored as the dollar was sold off on the back of the US Treasury Secretary, Mnuchin, suggesting that there isn't much the administration can do for near-term growth.

"There are better grounds for the pound to perform well than the yen or the euro. Revised Q4 GDP data resulted in a modest upward revision in the Q/Q rate from 0.6% to 0.7% due to the largest contribution to overall growth from net trade since 2011," argued analysts at Bank of Tokyo Mitsubishi, adding, "The devaluation of the pound is playing a role in isolating the UK from the negative implications related to Brexit uncertainty."

GBP/USD levels

GBP/USD's broader trend momentum signals are noted by analysts at Scotiabank as looking fairly flat now, supporting the range trade environment. Below 1.2250 would otherwise alleviate immediate upside pressure and could trigger losses to the 1.1988/80 recent low, as suggested by analysts at Commerzbank, adding, " Immediate support is the 1.2347 February low. Last weeks high at 1.2583 guards the top of the channel at 1.2687. Only above 1.2687 would allow for further strength to the 1.2776 December high. Between here and 1.2836 lies several Fibonacci retracements and major resistance and we suspect that it will struggle here."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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