GBP/USD takes a sharp U-turn post-GDP, 1.2600 closer

The USD bulls accelerated control over the last hour, knocking-off GBP/USD sharply to fresh session lows of 1.2624, as markets digest better-than expected UK fourth quarter GDP figures.

The cable eroded almost 50-pips in minutes after the US dollar ran through fresh buyers and popped higher against its major peers, tracking a renewed uptick in the treasury yields across the curve. The USD index jumps +0.28% to 100.20, witnessing a solid spike from 100 levels.

Moreover, the pound failed to benefit from slightly upbeat UK growth numbers, as markets resorted to profit-taking as Brexit Minister Davis’ testimony before the Parliament gets underway, while focus turns towards the release of the bill to trigger the Article 50 by the UK PM May due later today.

Later in the NA session, the US jobless claims, goods trade balance and new home sales will have a significant impact on the USD demand.

GBP/USD Levels to consider            

At 1.2595, upside barriers are lined up at 1.2686 (daily R1), 1.2697 (Dec 1 high) and 1.2721 (Dec 14 high). While supports are aligned at 1.2588 (daily pivot) and 1.2546 (5-DMA) and below that at 1.2500 (round number).