GBP/USD jumps back above 1.2300 handle

Haresh Menghani FXStreet

The greenback surrendered some of its early gains, helping the GBP/USD pair to accelerate the up-move and reclaim 1.2300 handle.

The US Dollar buying interest stalled during early European session as market seems to have digested yesterday's hawkish comments from the Fed Chair Janet Yellen. Moreover, a mildly positive opening in the European equity market also seemed to drive risk-on trade and collaborate to the pair's bullish spike in the past hour or so. At the time of writing, the pair was trading at fresh session peak around 1.2310 region.

With an empty UK economic docket, traders on Thursday will remain focused on US releases that include - building permits, housing starts, Philly Fed manufacturing index and the usual initial jobless claims, for some short-term trading impetus. Also in focus would be the Fed Chair Janet Yellen's appearance later during NY session and might reignite some near-term US Dollar rally ahead of Trump's inauguration on Friday.

Technical levels to watch

Immediate upside resistance is seen near 1.2320-25 area above which the pair is likely to make a fresh attempt to move back above 1.2400 handle and head towards retesting 50-day SMA strong resistance near 1.2415-20 region.

On the downside, weakness back below 1.2275 level might continue to find support near 1.2250 level, which if broken decisively is likely to drag the pair back towards 1.2200 round figure mark.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.2170

36% Bullish
43% Bearish
21% Sideways

Bias Bearish

1 Month

Avg Forecast 1.2115

25% Bullish
50% Bearish
25% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.2081

30% Bullish
35% Bearish
35% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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