GBP/USD consolidative around 1.2500

The British Pound is trading almost unchanged vs. the buck on Wednesday, prompting GBP/USD to remain within the current sideline theme around 1.2500.

GBP/USD retreats from 1.2550

After climbing to fresh tops in the mid-1.2500s on Tuesday, the pair met some selling pressure and has now receded towards the 1.2500 neighbourhood ahead of the opening bell in the Old Continent.

GBP gained around two cents on Tuesday in response to hawkish comments by BoE’s External MPC Member K.Forbes, who hinted that rates could start to rise in response to the weaker Sterling. In her own words “In my view, if the real economy remains solid and the pickup in the nominal data continues, this could soon suggest an increase in Bank Rate. It is worth highlighting that an increase in interest rates, however, given today’s extremely low level of Bank Rate, and the substantial amount of monetary stimulus that is already in place through a variety of programs, would still leave a substantial amount of monetary support for the economy”.

In addition the recent rally in USD seems to have taken a breather so far today, giving some respite to the risk-associated space.

Events-wise in the UK today, Sir Jon Cunliffe is due to speak in an otherwise empty docket.

GBP/USD levels to consider

As of writing the pair is up 0.02% at 1.2510 and a breakout of 1.2547 (high Fe.7) would open the door to 1.2680 (high Jan.26) would open the door to 1.2715 (high Feb.2) and then 1.2776 (high Dec.6). On the flip side, the immediate support aligns at 1.2451 (100-day sma) followed by 1.2431 (55-day sma) and finally 1.2344 (low Feb.7).