GBP/USD upside lost momentum around 1.2500 ahead of data

Pablo Piovano FXStreet

The bid tone around the Sterling remains well and sound on Wednesday, now sending GBP/USD to the 1.2500 neighbourhood, or daily peaks.

GBP/USD attention to FOMC, data

The pair continues to show a high degree of resilience so far this week, advancing since Monday despite the persistent buying sentiment surrounding the greenback. Gains, however, seem to have found quite a strong resistance just above 1.2500 the figure, where sits the 20-day sma.

The short term scenario stays favourable to the British Pound for the time being, as Brexit concerns appear somewhat alleviated while fundamentals stay solid despite some weakness seen in past weeks.

Another story comes from the speculative front, where GBP net shorts have increased to multi-week highs during the week ended on February 14 according to the latest CFTC report.

Later in the session, another revision of UK’s Q4 GDP is expected to come in at 0.4% inter-quarter and 2.2% on an annualized basis. Across the pond, US Existing Home Sales are due ahead of the speech by FOMC’s J.Powell (permanent voter, neutral) and the FOMC minutes.

GBP/USD levels to consider

As of writing the pair is up 0.14% at 1.2489 and a break above 1.2509 (20-day sma) would open the door to 1.2550 (high Feb.14) and finally 1.2715 (high Feb.2). On the other hand, the immediate support aligns at 1.2379 (low Feb.15) ahead of 1.2344 (low Feb.7) and finally 1.2250 (low Jan.19).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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