GBP/USD at multi-week tops above 1.25 ahead of a Big week

The GBP/USD pair extended its bullish momentum on Monday, now flirting with fresh five-week highs reached near 1.2530 stepping into a Big week ahead.

The spot leaps in Asia amid broad based US dollar weakness, as markets digest reports of the Trump administration’s failure to pass the Healthcare bill through the Congress. Moreover, steep losses in the treasury yields on the back of persisting risk-off trades, boosts the demand for the GBP as an alternative higher-yielding currency.

Additionally, reports of the UK PM May’s visit to Scotland today, in order to meet the Scottish First Minister Nicola Sturgeon and make a case to ‘build a more United nation’, lends support to the British pound against its American counterpart.  

All eyes now remain on the historic triggering of Article 50 on Wednesday, which will set the tone for the pound in the coming months, while the growth numbers from the US and UK will also remain in the spotlight this week.

Later today, amid a lack of fundamental news from the UK docket, the spot will continue to get influenced by the USD dynamics and risk sentiment ahead of the FOMC member Evan’s speech due later in the NA session.

GBP/USD Levels to consider            

A break above 1.2550 (psychological levels) would expose 1.2569 (Feb 24 high), above which the spot may test supply around 1.2673 (Jan 26 high). On the other hand, a breakdown of support at 1.2495 (5-DMA) could yield a sell-off to 1.2419 (50-DMA) and 1.24 (zero figure).