GBP/USD on its way to test post-flash crash high?

The bid tone behind the GBP keeps growing bigger in the European hours, driving GBP/USD further into positive territory on the upper bound of 1.25 handle.

GBP/USD hits fresh highs

The cable picked-up significant strength in early Europe and now looks to test post-flash crash highs reached at 1.2585 in the last US session. The major is now trading around 1.2575 region, up 0.20% on the day, and within close proximity to daily tops.

The GBP/USD pair gathered momentum and advanced further amid renewed risk-on wave, after the Eurostoxx futures gained +0.40 in early trading, which pointed towards a positive start to the European markets.

Although a minor-recovery in the US dollar versus its major peers is likely to keep a check on the prices. Markets now await the UK construction output data for fresh impetus on the GBP ahead of the US consumer sentiment and Fed  official Fischer’s speech due in the American session.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2600 (zero figure), 1.2650 (psychological levels) and 1.2700 (round number). While supports are lined up at 1.2552 (50-DMA) and 1.2504 (daily pivot) and below that at 1.2461 (5-DMA).