GBP/USD looks to regain 100-DMA amid stalled USD buying

The GBP/USD pair remains better offered in the Asian trades, although makes minor-recovery attempts from session lows struck at 1.2422 amid weaker shorter-duration treasury yields, which capped the rebound in the greenback versus its main peers.

The US dollar reversed sharply across the board in the US last session, after the US President Trump reiterated his plans to boost infrastructure and said that the White House is planning to increase defense spending by $ 54bn, which will be offset with significant cuts to foreign aid and reductions in agency spending.

The pound is expected to remain under pressure in the day ahead as markets continue to weigh chances of a Scottish independence referendum, against the backdrop of ongoing uncertainty surrounding the Article 50 trigger.

The immediate focus now remains on Trump’s interview scheduled today at 1100 GMT, in absence macro news from the UK docket. Also, Trump’s Congressional address later in the American evening this Tuesday will provide fresh direction on the buck.

GBP/USD Levels to consider            

At 1.2433, the resistances are aligned at 1.2453/60 (10 & 5-DMA) and 1.2475 (20-DMA) and below that at 1.2500 (zero figure). On the flip side, the supports are lined up at 1.2382 (2-week low) and 1.2344 (Feb 7 low) and below that at 1.2300 (psychological levels).