GBP/USD: 1.2400 closer on Yellen-led USD weakness

The GBP/USD pair is on a break higher from 1.2330 region, with the bulls now targeting 1.24 handle amid fresh USD selling, in wake of Fed Yellen’s latest comments.

GBP/USD looks to test 50-DMA at 1.2396

GBP/USD broke higher from a brief consolidation phase seen in early Asia and now accelerates the upside, as the greenback loses ground across the board following Fed Chair Yellen sounded less hawkish in her recent remarks, noting that it is 'prudent' to adjust the stance of monetary policy gradually.

Moreover, upbeat China Q4 GDP data combined with higher commodities’ prices added to the bullish move in the higher-yielding/ risk currency GBP. However, it remains to be seen how markets react to the Trump inauguration, with ‘Sell the fact’ likely to emerge the key theme going forward.

In the meantime, the major will get highly influenced by the UK retail sales data due to be published in the European session ahead.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2396 (50-DMA), 1.2415 (100-DMA) and 1.2437 (10-day high). While supports are aligned at 1.2312 (daily pivot) and 1.2286 (5-DMA) and below that at 1.2255 (20-DMA).