The Sterling sticks to the bullish note during the second half of the week, with GBP/USD gyrating around the 1.2500 neighbourhood.
GBP/USD propped up by USD-selling
The pair has regained the 1.2500 handle and above on Thursday, although the bull run seems to have lost vigour just above daily highs near 1.2520.
The renewed offered bias around the greenback stays as the exclusive catalyst for the ongoing rebound in the risk-associated space for the time being, as USD-sellers have stepped in following the recent strong gains in USD.
In fact, the bullish attempt in the Dollar failed to extend further north of the 101.70 region when measured by the US Dollar Index (DXY), sparking the current leg lower and partially fading the advance in response to Yellen’s testimony on Tuesday.
Looking ahead, US Housing Starts, Building Permits and the Philly Fed manufacturing index are all due later in the NA session.
GBP/USD levels to consider
As of writing the pair is up 0.33% at 1.2503 facing the next resistance at 1.2572 (high Feb.7) ahead of 1.2680 (high Jan.26) and finally 1.2715 (high Feb.2). On the other hand, a breakdown of 1.2379 (low Feb.15) would aim for 1.2344 (low Feb.7) and finally 1.2250 (low Jan.19).