GBP/USD consolidates 4 big figures UK May & Trump-led rally

The GBP/USD pair embarks upon a corrective mode on Wednesday, after having faced fresh offers at 50-DMA, as the bulls consolidate the recent massive upsurge.  

GBP/USD back below 1.2400, where 50-DMA intersects

GBP/USD surrenders 1.24 handle and now looks to stabilize around the mid-point of 1.23 handle amid renewed USD buying, as the treasury yields attempt minor-recovery from yesterday’s steep drop sparked by Trump’s comments on recent USD appreciation.

On Tuesday, the cable witnessed a solid 400-pips comeback from ahead of 1.20 handle, mainly helped by the UK PM May’s strong and clear talks on Brexit, while Trump’s warning over a stronger yuan, particularly against the Yuan, provided extra legs to the GBP rebound.

Market wrap: Trump and May made the day - Westpac

Attentions now turns towards a fresh batch of critical US economic data due to be reported in the NA session, following the release of the UK jobs data. In the US, we have the CPI and industrial production up on the sleeves. Besides, Fed speaks, including Yellen’s, will also grab the eyeballs.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2401 (50-DMA), 1.2415/29 (weekly high/ 100-DMA) and 1.2500 (zero figure). While supports are aligned at 1.2300 (round figure) and 1.2281 (daily pivot) and below that at 1.2249 (20-DMA).