GBP/USD: A phase of consolidation near 2-month tops

The GBP/USD pair is seen consolidating the upside in a 30-pips tight range so far this session, awaiting fresh impetus for the next push higher.

GBP/USD trades well above 100-DMA at 1.2723

The pound remains better bid versus its American rival as we head into early Europe, keeping GBP/USD within close proximity of two-month highs reached at 1.2751 some minutes ago.

The strength in cable can be largely attributed to the downside correction seen in the greenback across the board amid subdued US treasury yields. While the UK Supreme Court hearing on Brexit began yesterday and we had a strong UL services PMI numbers, which underpinned the sentiment around the GBP.

Moreover, prevalent risk-on moods in the US last session, as markets ignored Italy’s No vote, also help the GBP/USD pair to reach the highest levels since October. Looking ahead, amid a data-light UK docket, focus shifts towards the US trade and factory orders data due on the cards in the NA session.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2751 (2-month top), 1.2772 (Oct 5 high) and 1.2800 (round number). While supports are seen at 1.2694 (5-DMA) and 1.2623 (previous low) and below that at 1.2583 (10-DMA).