GBP/USD off highs, still above 1.2500

The British Pound is trading on a firmer note vs. the greenback on Tuesday, with GBP/USD managing well to keep the trade above the 1.2500 barrier so far.

GBP/USD firmer on USD selling

After bottoming out in 4-day lows near 1.2460 on Monday, the pair regained some attention and returned to the area above the 1.2500 handle, always backed by a renewed selling bias around the US Dollar.

Uncertainty around Trump and his recent and potential new policies/announcements has been weighing on the global sentiment, and particularly on the buck despite auspicious data as of late reinforced the solid marhc of the US economy.

Data wise in the UK, the BoE’s Consumer Credit and Net Lending to Individuals is due along with Mortgage Approvals and Money Supply. Across the pond, the S&P Case-Shiller Index, Chicago PMI, CB’s Consumer Confidence and Q4 Employment Cost Index are all expected later.

Recall that GBP has been supported by speculative positioning as well, with net shorts retreating to 4-week lows during the week ended on January 24, along with declining Open Interest.

GBP/USD levels to consider

As of writing the pair is gaining 0.18% at 1.2508 and a break above 1.2604 (high Jan.30) would aim for 1.2614 (high Jan.27) and then 1.2680 (high Jan.26). On the flip side, the immediate support lines up at 1.2462 (low Jan.30) followed by 1.2419 (55-day sma) and finally 1.2359 (20-day sma).