GBP/USD off daily highs, back around 1.2480

After peaking at 1.2525, the GBP/USD was unable to extend the gains as the greenback, fueled by the upsurge in the U.S. 10-year bond yield, gathered strength during the NA session. At the moment, the GBP/USD is at 1.2480, still recording a daily gain of 0.35%.

The US dollar index,  leaped to 100.30 area as the U.S. 10-year bond yield increased 1.3%, erasing yesterday's sharp losses. Additionally, the economic growth data from the country came out positive, further supporting the index's climb. Fed speakers didn't offer anything of interest to the markets as they delivered their pre-prepared speeches. 

US: Real GDP increased at an annual rate of 2.1% in the fourth quarter of 2016

Over the medium and long-term, Brexit negotiations could continue to limit GBP's gains against its rivals. As if that's not enough, Scottish Parliament didn't lose any time to start preparing for a second independence referendum as it yesterday voted by 69 to 59 in favor of seeking permission for it.

Sturgeon signs a letter formally asking for a second independence referendum - BBC

Technical levels to consider

The first resistance for the pair aligns at 1.25 (psychological level) followed by 1.2570 (Feb. 24 high) and 1.2615 (Mar. 27 high). On the downside, with a decisive break below 1.2450 (Fib. 61.8% of Dec/Jan drop), the drop could extend towards 1.2405/10 (50-DMA/100-DMA) and 1.2355 (20-DMA).