GBP/USD clings to gains above 1.2400, Fedspeaks in focus

The GBP/USD pair held on to tepid recovery gains back above 1.2400 handle and is now heading back towards session peak.

Currently trading around 1.2425 level, the pair caught fresh bids after comments from BoE MPC member Ben Broadbent revealed that the central bank was less inclined to accommodate above-target inflation. Adding to this, broad based greenback retracement, as depicted by a minor pull-back in the overall US Dollar Index from over 13-year highs, is further supporting the major's recovery from session low near 1.2380 region.

Next in focus would be speeches from various Fed officials, which could reiterate the Fed Chair Janet Yellen's view that the US central bank might raise interest rates "relatively soon" and might trigger a fresh leg of up-move for the US Dollar during NY trading session.

Technical outlook

Slobodan Drvenica, Information & Analysis Manager at Windsor Brokers Ltd., notes, "Near-term studies are entering bearish mode and firm break below 1.2375 handle could trigger fresh weakness for attack at near-term breakpoint at 1.2350 (09 Nov post-US elections low), loss of which is needed to revive daily bears for extension towards next strong supports at 1.2306/21 zone (Fibo 61.8% of 1.2081/1.2671 / 30 SMA)."

He further writes, "Selling upticks towards daily Tenkan-sen line (1.2511) is favored, while sustained break here would neutralize downside threats and shift near-term focus higher."

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