Having posted a session high at 1.2518 level, the GBP/USD pair reversed course and dropped to 1.2475 region before recovering few pips to currently trading around 1.2485-90 band.
The pair failed to build on Tuesday's sharp recovery move of around 200-pips led by hawkish comments by BoE's board member Kristin Forbes, highlights possibilities of a rate-hike sooner-than-expected ‘even if it means reversing recent adjustments'.
The pair turned lower on Wednesday as investors quickly switched to lock-in some profits amid lack of follow through momentum. Moreover, investors also seemed to adopt cautious stance ahead of the final House of Commons vote on the Brexit bill at 20:00 GMT.
In addition to this, continuation of the ongoing US Dollar recovery also collaborated to the downbeat sentiment surrounding the major on Wednesday in absence of any relevant fundamental drivers, in-terms of economic releases.
Technical levels to watch
A follow through retracement below 1.2460 level is likely to drag the pair towards 50-day SMA support near 1.2435-30 region, which if broken decisively would negate Tuesday’s up-surge and turn the pair vulnerable to head back towards retest 1.2350 support area with 1.2400 round figure mark acting as intermediate support.
Meanwhile on the upside, momentum above 1.2520 level could get extended towards 1.2550 important resistance above which the pair seems all set to accelerate the up-move beyond 1.2600 handle, towards its next important resistance near 1.2655-60 area.
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.