GBP/USD breaches 1.2500 post-UK data

The British Pound has turned negative on Tuesday, with GBP/USD quickly breaking below the key barrier at 1.2500 the figure.

GBP/USD faded the spike to 1.2520

The pair keeps correcting lower today after UK releases showed BoE’s Consumer Credit dropped to £1.04 billion in December and Net Lending to Individuals decreased to £4.8 billion during the same period.

Further data showed Mortgage Approvals expanding less than expected by 67.9K in the last month of 2016 and M4 Money Supply has contracted at a monthly 0.5% in December.

Spot has quickly broken below 1.2500 and is now testing lows in the mid-1.2400s in the wake of the releases and amidst a tepid recovery in the US Dollar.

Recall that GBP has been recently supported by speculative positioning, with net shorts retreating to 4-week lows during the week ended on January 24, along with declining Open Interest.

Data in the US docket today includes Q4 Employment Cost Index, seconded by the S&P Case-Shiller Index, Chicago PMI and Consumer Confidence measured by the Conference Board.

GBP/USD levels to consider

As of writing the pair is retreating 0.29% at 1.2450 facing the immediate support at 1.2419 (55-day sma) followed by 1.2359 (20-day sma) and then 1.2250 (low Jan.19). On the flip side, a break above 1.2604 (high Jan.30) would aim for 1.2614 (high Jan.27) and then 1.2680 (high Jan.26).