GBP/USD: catching a bid on US data miss despite nuetral BoE Carney

Currently, GBP/USD is trading at 1.2456, down -0.09% on the day, having posted a daily high at 1.2483 and low at 1.2401.

GBP/USD has rallied on the back of the dollar losing ground across the board due to the manufacturing data missing while markets get positioned for tomorrow's Fed minutes; thus moves can be somewhat exaggerated than justified. Sterling, on the other hand, has been positively better bid for the best part of 2017, especially vs the euro with the cross now testing the lowest levels for the year at the mid-point of the 0.854 handle from 86.40 territory earlier in the year. Today's UK inflation hearings were not so kind to the pound given Carney explained that there had been no uptick in inflation. 

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GBP/USD levels

On the wide, 1.2250 level offers a key support that, if broken, opens up territory towards 1.1988/80 and the recent lows. However, ahead of there, for the near term the immediate support is the 1.2347 February low as suggested by analysts at Commerzbank. "Last week's high at 1.2583 guards the top of the channel at 1.2689. Only above 1.2687 would allow for further strength to the 1.2776 December high, explained the analysts. "Between here and 1.2836 lies several Fibonacci retracements and major resistance and we suspect that it will struggle here."