GBP/USD: Recovery remains capped below 1.2450 ahead of Trump

The GBP/USD pair stalled its downslide and now looks to consolidate the latest leg down from 1.2450 levels, as market turn in a wait-and see mode before creating fresh position ahead of Trump’s interview with FOX and US GDP numbers.

Meanwhile, the USD index trades modestly flat, clinging to 101 barrier, and the treasury yields across the horizon drop -0.31% to -1%.

Over the last hour, cable appears to find some support from latest comments from the newest BOE MPC board member Hogg, who noted that the MPC should be clear about its intentions on the QE exit. She also said that she doesn’t believe QE has created problem of overvaluation in the gilt market.

GBP/USD Levels to consider            

At 1.2435, the resistances are aligned at 1.2453/60 (10 & 5-DMA) and 1.2475 (20-DMA) and below that at 1.2500 (zero figure). On the flip side, the supports are lined up at 1.2382 (2-week low) and 1.2344 (Feb 7 low) and below that at 1.2300 (psychological levels).