GBP/USD regains poise, 1.2600 – a whisker away

After a brief period of upside consolidation seen over the last hours, the GBP/USD pair resumed its bullish march and now moves closer towards 1.2600, the highest levels since Feb 2.

The spot caught a fresh bid-wave as the US dollar ran through fresh sellers versus its main peers in mid-Europe, despite a tepid-bounce seen in the treasury yields across the curve, as the sentiment remains dented by the failure to pass the Healthcare bill by the US Congress.

Moreover, the renewed uptick in cable can be attributed to investors’ optimism, in anticipation of the UK PM May meeting with the Scottish First Minister Nicola Sturgeon, aimed at make a strong case for unity.

Also, markets gear up for the Article 50 trigger this Wednesday, as they finally seek clarity on Brexit and hence, boosts the GBP further. Next of note for the major remains the FOMC member Evan’s speech due later in the NA session, as markets digest the BOE FPC’s latest meeting minutes.

GBP/USD Levels to consider            

Carol Harmer, Founder of Charmer Trading Academy, explains, “Give it its due...we have broken 1.2529 and now looks set to reach the Feb yearly high of 1.2570...I think Cable will come under pressure at this point...but I also think seriously that Cable is a buy on dips.. Yes.. we are overbought. But we can go sideways to ease that...what we really want to see s a pullback to 1.2445/40 area and that I think will encourage buyers back into the market.”

“1.2445/40 would be a good level to go in and buy and I know yo cannot act like a bank trader...but even if it breaks here we will still see buyers coming in and defending any sort of weakness. So please be prepared,” Carol adds.