GBP/USD flirting with highs near 1.2460

The buying interest around the Sterling is gathering extra traction at the beginning of the week, now lifting GBP/USD to the area of daily highs in the 1.2450/60 band.

GBP/USD supported near 1.2400

The pair is reverting last Friday’s sell off to the 1.2400 neighbourhood, as the offered tone around the greenback appears to be intensifying following the European opening.

Looking to the broader picture, spot remains well within the consolidative pattern seen since early February, likely between 1.2600 and 1.2400, while GBP stays under pressure in light of the recent disappointing results from the UK docket, Brexit uncertainty, a steady-to-cautious BoE and extreme speculative positioning.

On the data front, CBI’s Industrial Trends is up later in the morning, while UK’s Public Sector finance figures and the speech by Governor M.Carney are expected tomorrow.

GBP/USD levels to consider

As of writing the pair is up 0.35% at 1.2452 and a breakout of 1.2518 (20-day sma) would open the door to 1.2550 (high Feb.14) and finally 1.2715 (high Feb.2). On the other hand, the immediate support lines up at 1.2379 (low Feb.15) ahead of 1.2344 (low Feb.7) and finally 1.2250 (low Jan.19).