GBP/USD lacks follow through momentum, holding marginally above 1.2550 level

Having posted a session low just below 1.2500 psychological mark, the GBP/USD pair regained traction and cleared an important barrier near mid-1.2500s.

The pair, however, lacked follow through momentum, albeit held in positive territory for the third consecutive session, and has now retreated from session peak to currently trade around 1.2560-65 region. No relevant fundamental drivers could be attributed to the pair's up-move during mid-European session and the US Dollar price-dynamics remains an exclusive driver amid thin economic docket. 

Meanwhile, Parliament’s approval of the UK government's Brexit bill, allowing PM Theresa May to trigger Article 50 and begin the process of ending Britain's association with the European Union, also seems to underpin demand for the British Pound and collaborated to the pair's up-move on Thursday.

Next in focus would be US economic docket, featuring the usual release of weekly jobless claims and might provide some impetus for short-term traders.

Technical levels to watch

A follow through momentum above 1.2575-80 area is likely to accelerate the up-move beyond 1.2600 round figure mark towards its next important resistance near 1.2655-60 area. On the flip side, 1.2535 level now seems to act as immediate support, which if broken might drag the pair back towards 1.2500 psychological mark. Weakness below 1.25 handle could further get extended towards 100-day SMA support near 1.2460 region.