GBP/USD eases off highs at 1.2430 on BOE’s Broadbent

The recovery in the GBP/USD pair faltered just below 5-DMA, with the rate now drifting back towards 1.24 handle, as markets digest latest comments from BOE deputy governor Broadbent.

GBP/USD: Fed speech – Next - up

The major fails to sustain at higher levels, despite a minor-retreat seen in the US dollar in tandem with the treasury yields. The latest leg lower in the GBP/USD pair can be mainly attributed to BOE member Broadbent’s comments, as he said that the recent sharp depreciation in the GBP matters a lot for the bank to decide on its policy.

The spot is last seen exchanging hands at 1.2410, down -0.09% on the day, while the ISD index recedes to 101.25, still up +0.25% so far. Markets now eagerly await comments from the Fed officials due later in the NA session for fresh hints on the US interest rates outlook, which will have a significant impact on the USD dynamics.

GBP/USD Levels to consider            

At 1.2420, the pair finds immediate resistances placed at 1.2443 (5-DMA/ daily pivot), 1.2472 (10-DMA) and 1.2500 (psychological levels). While supports are lined up at 1.2379 (daily S1) and 1.2349 (Nov 9 low) and below that at 1.2300 (round number).

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