GBP/USD sticks to recovery gains near 1.24 handle, Yellen awaited

The GBP/USD pair held on to its recovery gains, albeit struggled to build on early up-move and remained stuck within 15-20 pips narrow trading range around the 1.2400 handle. 

The pair on Monday staged a goodish recovery despite of post-NFP US Dollar recovery move from 5-month lows touched on Monday. Growing Fed rate-hike expectations in wake of an unexpected drop in the unemployment rate, and robust average hourly earnings growth, helped the key US Dollar Index to hold above the 101.00 handle, closer to near 3-week highs touched during Asian session on Monday. 

In absence of any major market moving economic releases, the pair's recovery move could be solely attributed to some short-covering from near-term oversold conditions, from nearly three-week lows. 

The pair, however, has failed to build on to its momentum further beyond the 1.2400 handle amid lack of follow through buying interest as market participants seemed to keenly await the Fed Chair Janet Yellen's scheduled speech, later during the NY session for fresh impetus. 

Technical levels to watch

From current levels, immediate resistance is seen near 1.2425 level, above which the pair is likely to extend the recovery momentum further towards the 1.2445-50 region. On the flip side, retracement back below 1.2370 immediate support now seems to turn the pair vulnerable to accelerate the slide towards 1.2325 horizontal support ahead of the 1.2300 handle.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

GME stock positioned for another short squeeze

Get the full analysis and chart in our Insights. Upgrade to Premium today    

Latest Forex News

Latest Forex News

Editors’ Picks