Risk-off sentiment dominated Asian trades, which capped further gains in the higher-yielding currency GBP, leaving GBP/USD in a bullish consolidation phase just below 1.25 handle.
The spot extended its side-trend into Asia, and now awaits fresh impetus from the sentiment on the European open and UK employment data. A better UK jobs report could take the rate back above 1.25 handle.
The stalled upside in the major can be also attributed renewed USD buying, while some aggressive selling witnessed in the GBP/JPY cross also keeps a check on cable. The yen crosses were dumped in Asia on renewed risk-off wave, as investors remain cautious in light of persisting geo-political tensions.
North Korea warned of a nuclear strike should the US provoke them, while the US remains prepared for additional airstrikes on Syria if they use chemical weapons again.
GBP/USD Levels to consider
Matias Salord, Analyst at FXStreet explained, “Momentum still favors the upside, but the pound needs to break above 1.2500 to clear the way to more gains and target 1.2530 first and 1.2555 then. Failure to break above 1.2500, could lead to a correction with support at 1.2430. A sharp decline, not seen at the current moment, that pushes the price below 1.2390, would favor a bearish acceleration. Support levels: 1.2450 1.2420 1.2375 Resistance levels: 1.2505 1.2550 1.2555 1.2595.”
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