GBP/USD popping up to say hello to bear's offers at 1.2550

Currently, GBP/USD is trading at 1.2533, up 0.23% on the day, having posted a daily high at 1.2547 and low at 1.2501.

GBP/USD has popped higher as the dollar continues to unwind on a day where Trump is driving fear into investors with uncertainty around his policies, some of which he has already started to implement and is being more vocal about, especially trade.

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Meanwhile as we move through into Asia where trade is always thin and prices can be volatile with exaggerated moves, cable just popped up to the key 1.2550 mark where offers are seen above, likely to slow momentum in Tokyo today. However, a close through here targeting 1.2580 could lead to a daily close above 1.2550 with motivation for December highs.

The fundamental catalyst here, in early Asia, was the US Treasury Sec. Minuchin's comments that came hitting the wires saying that excessively strong' USD may be negative in short-term and that they will address issue of currency manipulation. He also said that he would assess damage from China FX intervention and will assess damage from other 'unfair' China tactics - so seems like Trump will lead the US into a currency war and that has unnerved the dollar bulls while at the same time, there is some optimism in regards to Brexit with UK PM May meeting up with Trump at the end of the week to start making plans for Brexit.

GBP/USD levels

"We suspect that prices will need to go sub 1.2200/1.2165 to alleviate immediate upside pressure," argued analysts at Commerzbank, adding, "We note that the intraday Elliott count is positive and suggesting scope for 1.2620."

With spot trading at 1.2533, we can see next resistance ahead at 1.2536 (Daily 100 SMA), 1.2547 (Daily High), 1.2686 (Weekly Classic R2), 1.2955 (Weekly Classic R3) and 1.3172 (Daily 200 SMA). Support below can be found at 1.2529 (Daily Classic R3), 1.2524 (Weekly Classic R1), 1.2510 (Yesterday's High), 1.2504 (Daily Open) and 1.2504 (Monthly High).