GBP/USD flirting with highs near mid-1.2500s

The GBP/USD pair traded with positive bias for the second consecutive session and was seen building on Friday's up-move from the key 1.25 psychological mark.

Currently hovering marginally below mid-1.2500s, the pair has now moved closer to 2-1/2 week tops touched on Thursday last week. Friday's disappointing US macro data and escalating tensions between the US and N. Korea  has kept the US Dollar on the back foot, which has been a key factor driving the pair higher.

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The up-move, however, lacked strong momentum in absence of any fundamental drivers amid holiday-thinned liquidity conditions in wake of Easter Monday holiday in the European and London markets. 

Later during the NA session, the US economic docket featuring the release of Empire State Manufacturing Index would now be looked upon for short-term trading impetus.

Technical levels to watch

From current levels, 1.2575 level is likely to act as immediate hurdle, above which the pair is likely to accelerate the up-move towards the 1.2600 handle ahead of March monthly highs resistance near 1.2615 level. 

On the downside, any retracement below session low support near 1.2525-20 region might continue to find strong buying interest near the 1.2500 handle, which if broke might now drag the pair below 1.2480 intermediate support towards its next important support near 1.2420 region.