GBP/USD: Bears target 1.2500 amid tumbling UK yields

The GBP/USD pair reversed rapidly from fresh two-week highs (1.2571), and is now seen printing fresh daily lows at 1.2525 levels.

The latest leg lower in cable can be mainly attributed to the yield differential between the 10-year UK Gilts yields and treasury yields, which tilt in favor of the US dollar. The UK yields remain under pressure on account of the impending concerns surrounding the Article 50 trigger.

The US dollar index, which measures greenback’s strength against a basket of six major currencies, staged a bounce from daily lows of 100.81 and reverts to the familiar range near 100.95 region.

Meanwhile, the GBP markets ignore the second-liner UK BBA mortgage approvals data, which arrived at 44.7k versus 42k expectations. All eyes now remain on the US datasets for fresh incentive on the pair.

GBP/USD Levels to consider            

The supports are aligned at 1.2514 (daily pivot) and 1.2496 (5-DMA) and below that at 1.2474 (10-DMA). On the flip side, the upside barriers are lined up at 1.2571 (2-week high) and 1.2600 (zero figure) and below that at 1.2651 (daily R2).