GBP/USD turns mildly lower as USD regains traction

The GBP/USD pair failed to build on Monday's recovery momentum and has now slipped farther below 1.2500 psychological mark.

Currently trading with mild weakness around 1.2480, off few pips from session low level of 1.2465, spot ran through fresh offers and confirmed rejection near 1.2500 handle as the greenback regained traction ahead of relatively thin UK economic calendar featuring the release of UK public sector borrowing. After yesterday's corrective slide from over 13-year highs, the overall US Dollar Index reversed Tuesday's early corrective slide and has now turned mildly into positive territory. 

Later during NA session, US existing home sales for October and Richmond manufacturing index for November might provide some short-term trading opportunities. However, Wednesday's FOMC meeting minutes will remain centre of attraction and would be looked upon for fresh insights over the Fed's next monetary policy action. Fed expectations has been a key driver of the US Dollar's recent up-surge following Donald Trump's victory in the US presidential election. 

Technical levels to watch

Having faced rejection just above 1.2500 handle, a subsequent weakness below 1.2455-50 immediate support might now turn the pair vulnerable to break through 1.2400 handle towards testing 20-day SMA support near 1.2385-80 region. On the upside, sustained move above 1.2500 handle might lift the pair immediately towards 50-day SMA resistance near 1.2550 region.