GBP/USD headed to 1.2000 first?

GBP/USD is trading at 1.2418, down -0.20% on the day, having posted a daily high at 1.2472 and low at 1.2404.

GBP/USD has been consolidating for the main part albeit one of the softer G10's despite weakness elsewhere in the greenback. Focus on Brexit and the possibility of another Scottish independence referendum continues to weigh on risk sentiment for the pound.

US flash Q4 GDP at 1.9%

"UK data released late yesterday or overnight showed slightly weaker consumer confidence (Gfk’s Feb measure at -6, from -5 in Jan) while the Lloyds Business Barometer, which caught the market’s attention for its sharp slide in response to the Brexit decision, rose to 40, the best result since last March," explained analysts at Scotiabank. 

Meanwhile, for the greenback, the US data was mixed ad markets await Trump's address to Congress as the next major catalyst or the major.

President Trump’s address to congress: Clearer guidance? - Nomura

GBP/USD levels

The analysts at Scotiabank explained that the technical undertone for Cable remains soft, even though pound is effectively little changed against the USD on the session so far. "Heavy net losses Friday and, a little less obviously, yesterday keep the near-term, focus on the upper 1.23/low 1.24 area. The broader short-term range remains well-defined by recent highs (1.2585) and lows (1.2385) and trend momentum remains relatively flat. We still rather think broader risks are geared towards a test of the low end of the range and, perhaps the 1.20 area."