GBP/USD retakes1.2500 and above, USD deflates

After bottoming out in the vicinity o f 1.2460 in early trade, GBP/USD has managed to gather some traction and recovered the 1.250 handle and beyond.

GBP/USD in 2-day lows, looks to May’s speech

The pair has deflated from the 1.2670 region seen last Friday - the highest level since the GBP’s ‘flash crash’ on October 7 – following a strong pick up in the demand for the US dollar, particularly since Donald Trump was elected next US President last week.

In that regard, PM Theresa May is scheduled to speak later today with the main focus on trade links between the US and UK, all amidst efforts to re-set the role of the UK following the Brexit vote.

No data releases scheduled today in the UK docket, while Inflation Report Hearings and October’s CPI figures will be the salient points on Tuesday.

GBP/USD levels to consider

As of writing the pair is losing 0.49% at 1.2531 facing the next support at 1.2464 (low Nov.14) followed by 1.2351 (20-day sma) and finally 1.2349 (low Nov.9). On the flip side, a breakout of 1.2675 (high Nov.11) would aim for 1.2699 (55-day sma) and then 1.2796 (low Jul.6).

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