GBP/USD: in consolidation awaiting BoE/Treasury Select Committee

 Currently, GBP/USD is trading at 1.2464, down -0.02% on the day, having posted a daily high at 1.2469 and low at 1.2464.

Market wrap: S&P500 futures rose 0.2% to new highs - Westpac

GBP/USD has been consolidating the bid from the 1.2402 commencing rally from last week's closing business that reached as high as 1.2481 in London trade despite mounting concerns over Brexit. Recently, the BoE Gov Carney had been warning that UK consumer activity might retrench. 

The 0.2% drop in Jan UK retail sales last week (and a downward revision to the Dec number to -2.2%) suggests the governor’s caution on the rate outlook in the face of rising inflation could well be justified. Mark Carney, BOE Chief Economist Andy Haldane as well as MPC members Ian McCafferty & Gertjan Vlieghe will be testifying before the UK Treasury Select Committee on the February Inflation report tonight as next major catalyst

Economic outlook for the day ahead: RBA in focus - Westpac

Meanwhile, analysts at Scotiabank explained that they continue to think the GBP is starting to offer some longer-term value but aid they also suspect that the pound may experience more weakness in the near-to-medium term as the Brexit process gets underway. "The UK government indicated that it may start formal “divorce” proceedings in early March - We think Cable risks dropping back to the 1.20 area through mid-year."

GBP/USD levels

A close below 1.2420 opens 1.2253 as the 18th January low on the wide while to the upside, 1.2583 guards the top of the channel to 1.2689 and analysts at Commerzbank argued that only above 1.2689 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."