GBP/USD rebounds to test 1.2500 on BOE’s Carney, Oil

After a brief stint to the downside, the GBP/USD pair staged a solid comeback post-European open, now testing highs near 1.25 handle.

GBP/USD advances on Carney

The cable found fresh bids once again near 1.2470 region, fuelling another run to reclaim 1.25 handle, but in vain, as bears continue to guard the last, despite subdued trading activity seen behind the US dollar versus its main peers.

The rebound in the GBP/USD pair can be partly attributed to optimistic remarks delivered by the BOE Governor Carney on the UK’s financial system, during his press conference today following the BOE’s Financial Stability Report (FSR) release.

While sharp recovery in oil prices lifted the sentiment around the commodity-heavy FTSE 100 index, eventually boosting the risk-on flows in the GBP. Both crude benchmarks are up almost 4%.

Next of note for the major remains the US economic releases, while the OPEC-related news flows will also have some bearing on the risk currency.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2500/02 (round number/ daily high), 1.2533 (Nov 28 high) and 1.2550 (daily R1). While supports are seen at 1.2447 (10-DMA) and 1.2375 (50-DMA) and below that at 1.2357 (Nov 23 low).