GBP/USD consolidates Monday’s rally near 1.2500

After a solid rebound staged a day before, the GBP/USD pair consolidates the strong and gathers pace for further upside amid a risk-friendly market environment.

GBP/USD looks to take-out 1.2515 resistance

The major stalled its bullish run just ahead of NY highs posted at 1.2512, and since then continues to wave in a narrow range around 1.25 handle, as the bulls take a breather and bid up for the next push higher amid a better risk-tone prevalent across the markets in Asia.

Higher commodities’ prices combined with positive turnaround in the Asian stocks triggered a fresh bout of risk-on wave into markets, as traders move past sad news of earthquake that occurred in Japan and New Zealand earlier in Asia.

Moreover, ongoing weakness in the US treasury yields and hence, the greenback, also adds to the upbeat momentum behind the cable. The spot is last seen exchanging hands at 1.2496, almost unchanged on the day, having posted a four-day high of 1.2515 and day’s low at 1.2481.

Later in the day, the spot may get influenced by the UK’s public sector net borrowing data and BOE MPC member Forbes’ speech, ahead of the US existing home sales data. While the main risk events for the major this week remains the UK Treasury’s Autumn Forecast Statement and FOMC minutes.

GBP/USD Levels to consider            

At 1.2420, the pair finds immediate resistances placed at 1.2515 (daily high), 1.2568 (daily R1) and 1.2600 (zero figure). While supports are lined up at 1.2464 (10-DMA) and 1.2415 (5-DMA) and below that at 1.2362 (daily S1).

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