GBP/USD advances to 1.2470, session tops

The Sterling is following north the rest of its risk-associated peers, sending GBP/USD to print daily peaks in the vicinity of 1.2470.

GBP/USD boosted by weak USD

The generalized selling mood around the buck continues to be the exclusive driver behind the pair’s upside so far, while some extra buying interest seems to have supported GBP following recent auspicious results in the UK docket and the speech by PM Theresa May.

Concerns over the likeliness of a ‘hard Brexit’ scenario have somewhat diminished after May’s speech last Tuesday, while market participants will now look to the UK’s Supreme Court ruling on whether May or the Parliament has the power to trigger Article 50 (Tuesday).

Anyway, GBP is poised to stay under pressure in the next months, as economic and political implications from Brexit still remain a source of uncertainty for the country.

On the positioning side, GBP speculative net shorts have advanced to 5-week tops during the week ended on January 17, according to the latest CFTC report. Open Interest has been reinforcing the move, climbing as well to multi-week highs.

In the data space, UK’s GDP figures will be the salient release this week ahead of the meeting between PM T.May and President D.Trump, expected on Friday.

GBP/USD levels to consider

As of writing the pair is gaining 0.70% at 1.2462 facing the next hurdle at 1.2518 (100-day sma) ahead of 1.2729 (high Dec.13) and finally 1.2776 (high Dec.6). On the downside, a break below 1.2277 (low Jan.18) would aim for 1.2250 (low Jan.18) and finally 1.1979 (low Jan.16).