GBP/USD recovery loses steam near daily pivot

The offered tone behind the GBP/USD pair weakened sharply in the mid-Asian trades, sending the rate higher above the mid-point of 1.25 handle, before meeting fresh supply once again near the daily pivot placed at 1.2578.

GBP/USD supported above 1.2500

The cable staged as solid comeback so far this session, with the bulls rescued by a brief phase of upside consolidation seen in the greenback versus its major peers. The major is now trading around of 1.2560 region, down -0.29% on the day.

However, the recovery appears to have fizzled out over the last hour, as ongoing strength in the US treasury yields diminish the demand for the pound as an alternative higher-yielding asset. The 10-year benchmark treasury yields rally almost +4% to 2.20 levels, while the 2-year one rockets +7% to 0.972.

Meanwhile, slightly downbeat Chinese data dump also weighs on the investors’ sentiment and curbs the demand for risk assets such as the GBP, thereby stalling its rebound from 1.2510 levels.

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 1.2531 (50-DMA) and 1.2594 (10-DMA) and below that at 1.2373 (Nov 10 low).

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