GBP/USD on the bids and eyes 1.2300 on fresh USD selling

The GBP/USD pair caught a fresh bit tone last hour, after the greenback stalled its latest leg higher versus a basket of currencies.

GBP/USD supported above 1.2250

GBP/USD stalled its overnight consolidative mode and broke higher in the mid-Asian trades, mainly driven by renewed weakness in the US dollar across the board, as markets look past Fed Yellen’s hawkish and now await the US macro news for fresh impetus on the major.

Moreover, persisting risk-on trades amid higher Asian stocks and oil prices also boost the demand for higher-yielding currencies such as GBP.

On the data-front, there is nothing to be reported from the UK docket and hence, focus remains on the US housing data, Philly Fed manufacturing gauge and jobless claims data for further momentum.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2300 (round figure), 1.2368 (daily R1) and 1.2396 (50-DMA). While supports are aligned at 1.2245 (20-DMA) and 1.2208/1.2193 (5 & 10-DMA) and below that at 1.2150 (psychological levels).