GBP/USD struggling to extend gains above 1.25

The GBP/USD renewed its daily high at 1.2425 in the first hour of the American session before slipping back below 1.25, as the greenback was able to preserve its gains against major rivals. As of writing, the US Dollar Index is up 0.2% at 99.97.

10-Year bond yield in the United States has been choppy in the past few days and is making it tough for the greenback to make a decisive move. Today's economic data showed that the number of Americans filing for unemployment benefits fell less than expected for the week ended March 25, with initial claims falling 3,000 to 258,000 for the week ended March 25. Moreover, the Commerce Department released the third GDP revision for the U.S. at 2.1%, an improvement to the second revision of 1.9%.

Now markets are waiting on the statements from Dallas Fed's R.Kaplan (voter, hawkish) and San Francisco Fed's J.Williams (2018 voter, hawkish). Investors are also looking ahead to quarterly earnings, which could reshape the risk sentiment.

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At the moment, the GBP/USD is up 0.55% at 1.2498. A determined rise above 1.25 (psychological level) could aim for 1.2570 (Feb. 24 high) and 1.2615 (Mar. 27 high). On the downside, the first technical support could be found at 1.2450 (Fib. 61.8% of Dec/Jan drop) followed by 1.2405/10 (50-DMA/100-DMA) and 1.2355 (20-DMA).