GBP/USD jumps above 1.25 on broad based USD weakness

GBP/USD jumped to a session high of 1.2523 as the trading desks dumped the US dollar in response to Trump’s withdrawal of the health care bill. 

May heads to Scotland

UK PM Theresa May is set to meet Scottish First Minister Nicola Sturgeon today. May is to make a case for unity before she triggers Article 50 - which would mark the beginning of the two-year long divorce process from the EU. 

News flow out of Scotland could affect the demand for the British Pound. Meanwhile, European desks may offer US dollar as well, given the speculation is on the rise that Trump may not be able to deliver on fiscal front as efficiently as expected earlier.

GBP/USD Technical Levels

The spot was last seen trading around 1.2522. A break above 1.2531 (Thursday’s high) would expose 1.2569 (Feb 24 high), above which the spot may test supply around 1.2673 (Jan 26 high). On the other hand, a breakdown of support at 1.2495 (5-DMA) could yield a sell-off to 1.2419 (50-DMA) and 1.24 (zero figure).