GBP/USD clings to gains near 1.2370, G20 eyed

The British Pound keeps its upside intact so far today, with GBP/USD testing the upper bond of the weekly range near 1.2370.

GBP/USD attention to G20

Spot is advancing for the third consecutive session so far today, gathering extra pace in response to the Fed’s dovish hike on Wednesday. The last time Cable posted gains for three sessions in a row was back in late January.

The softer tone in the greenback allowed the pair to gain more than two cents since Tuesday’s low in the boundaries of 1.2100 the figure, although gains appear so far capped by the 55-day sma around 1.2380.

Adding to GBP’s bid tone, an optimistic BoE at yesterday’s meeting saw members voting 8-1 to keep the monetary status quo unchanged, with MPC member K.Forbes voting for a 25 bp rate hike. It was the first time of a split vote since July 2016.

Absent releases in the UK docket, the focus of attention will be on the 2-day G20 meeting, which kicks in later today.

GBP/USD levels to consider

As of writing the pair is up 0.10% at 1.2370 and a breakout of 1.2377 (55-day sma) would aim for 1.2411 (100-day sma) and finally 1.2572 (high Feb.24). On the other hand, the next support lines up at 1.2241 (low Mar.16) followed by 1.2138 (low Mar.15) and then 1.2106 (low Mar.14).