GBP/USD extends recovery towards 1.2400

The pound is enjoying some relief gains against its US counterpart in the Asian session, having bounced-off a brief dip to the mid-point of 1.23 handle at Tokyo-open.

The cable flirts with daily tops of 1.2384 and looks poised to test 1.24 handle in the day ahead, as the greenback remains broadly sold-off into a corrective mode, following yesterday’s extensive rally triggered by Fed Chair Yellen’s upbeat comments on the US labor market and wage-price growth.  

Moreover, latest comments from UK PM Theresa May also lifted the sentiment around the British currency.  The UK PM May noted that she wants an implementation phase to smooth Brexit process.

The USD price-action will continue to dominate the GBP markets ahead of the public sector net borrowings and US existing home sales data. While Thursday’s flurry of US economic data will bring in some fresh incentives for the spot.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2417/27 (daily R1/ 5-DMA), 1.2450 (psychological levels) and 1.2467 (daily R2). While supports are seen at 1.2364 (daily pivot) and 1.2314/11 (daily S1/ multi-week lows) and below that at 1.2297 (Nov 18 low).