GBP/USD better bid near 1.2400 on Trump’s speech

A fresh bout of buying interest gripped the GBP/USD pair, following Trump’s speech before the Congress, which weighed negatively on the treasury yields and dragged the greenback lower across the board.

Trump’s congressional address offered no new surprises or details on his fiscal agenda and was full of same old promises to make America great again, all of which disappointed markets once again, as evidenced by some fresh selling in the US dollar versus its main competitors. Meanwhile, the USD index turns negative near 101.30 levels, retreating from 101.57 highs, while the treasury yields eased-off highs across the curve.

With Trump’s speech, out of the way, focus now remains on the UK manufacturing PMI data and a flurry of US economic releases, including the ISM manufacturing PMI report, due later in the NA session.

GBP/USD Levels to consider            

At 1.2390, the resistances are aligned at 1.2447/50 (10-DMA) and 1.2470 (20-DMA) and below that at 1.2500 (zero figure). On the flip side, the supports are lined up at 1.2364 (3-week low) and 1.2344 (Feb 7 low) and below that at 1.2300 (psychological levels).