GBP/USD rebounds to fresh daily highs near 1.2670

Upbeat momentum seen around the European equities has once again lent support to the GBP bulls, lifting the GBP/USD pair from a brief drop to 1.2615 region.

The cable regains poise and now flirts with daily highs of 1.2672 amid risk-on market profile, as oil prices turn positive and the CBOE volatility index (VIX), fear gauge, drops -1.15%.

Moreover, stalled recovery in the US dollar across the board also opened doors for a renewed attempt to the upside in the major. Meanwhile, the USD index deflated from 100.20 levels to now trade around 100 barrier, down -0.27% on the day.

Markets now eagerly await the ECB verdict on the QE program for any rub-off effect on the GBP/USD pair. Meanwhile, the US initial jobless claims data will also remain in focus as we head towards the mid-European session.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2700 (round figure), 1.2720 (100-DMA) and 1.2776 (2-month top). While supports are seen at 1.2625 (Daily pivot) and 1.2610 (10-DMA) and below that at 1.2565 (daily S1).