GBP/USD catches fresh bids, tests 5-DMA

The GBP/USD pair is seen extending its steady recovery path into early Europe, with the bulls making another attempt to survive above 1.25 handle, despite a broadly higher US dollar in wake of higher treasury yields following a peaceful Trump-Abe Summit.

Over the last hour, cable caught a fresh bid-wave amid fresh selling seen in the EUR/GBP cross, as the euro makes headways for a test of multi-week lows reached just ahead of 1.06 handle versus the US dollar.

In absence of economic data from both the UK and US, the spot will take the lead from the USD price-action and risk trends for further moves. While attention turns towards the UK CPI report due tomorrow for fresh inputs on the GBP outlook going forward.

GBP/USD Levels to consider            

At, 1.2502 (5-DMA), the upside barriers are lined up at 1.2527 (20-DMA), 1.2572 (Dec 15 low) and 1.2600 (round figure). While supports are aligned at 1.2473 (daily S1) and 1.2413 (100-DMA) and below that at 1.2378 (50-DMA).