GBP/USD consolidates near monthly tops, 1.25 on sight before NFP

The bid tone behind the GBP is seen picking-up pace last hours, now driving the GBP/USD pair back towards fresh monthly highs reached just shy of 1.25 handle a day before.

GBP/USD better bid, but capped below 1.2500

The cable extends recovery from a dip to 1.2420 levels in the Asian session, and now makes fresh headways towards fresh four-week peaks of 1.2494, despite risk-off markets and a broadly higher US dollar.

The ongoing bullish momentum behind the GBP/USD pair gained further traction after yesterday’s UK High Court ruling poured cold water on reports of the Article 50 to be triggered by March-end next year, and hence, reduced chances of a ‘Hard Brexit’ landing.

While the pound was also bolstered after the BOE unexpected played down the chances of a further interest rates cut, citing that the Brexit process is less likely to have a dramatically negative impact on the UK economy than previously expected.

Later today, the US payrolls data will steal the limelight in absence of any key macro news from the UK docket. While BOE member Forbes speech will be eyed for fresh hints on the BOE’s monetary policy path.

GBP/USD Levels to consider            

At 1.2475, the pair finds immediate resistances placed at 1.2494/1.2500 (multi-week highs/ round number), 1.2541 (daily R1) and 1.2626 (pre-flash crash highs). While supports are lined up at 1.2417 (daily pivot) and 1.2345 (5-DMA) and below that at 1.2272 (10-DMA).