GBP/USD advances to 1.2240, daily tops

The British Pound is following the rest of the risk-associated assets on Thursday, sending GBP/USD back above the 1.2200 handle.

GBP/USD stronger, USD eases further

Spot has managed to regain the key barrier at 1.2200 the figure as the ‘Trump-rally’ in the greenback continues to unwind ahead of the opening bell in the Old Continent.

In fact, yesterday’s press conference by the US president-elect failed to shed more light on the potential policies to be implemented under his administration, intensifying further the selling pressure around the buck.

On the UK side, the BoE’s Financial Stability Report passed almost unnoticed on Wednesday, with Carney noting that Brexit could amplify global risks for the UK economy.

In the data space, US Import/Export Prices are due followed by the weekly report on the labour market. In addition, a slew of Fed speakers should keep the attention on the Dollar later today: Chicago Fed C.Evans (voter, dovish), Philly Fed P.Harker (voter, hawkish), Atlanta Fed D.Lockhart (centrist), St.Louis Fed J.Bullard (centrist) and Dallas Fed R.Kaplan (voter, hawkish). Chairwoman J.Yellen is also due to speak although it won’t be on monetary policy.

GBP/USD levels to consider

As of writing the pair is advancing 0.22% at 1.2241 facing the initial resistance at 1.2296 (20-day sma) followed by 1.2416 (55-day sma) and finally 1.2431 (high Jan.6). On the other hand, a breach of 1.2104 (low Jan.10) would open the door to 1.2081 (low Oct.28) and then 1.1450 (GBP ‘flash crash’ Oct.7).