GBP/USD consolidates losses below 1.2500, ahead of Yellen

GBP/USD bottomed during the European session after UK inflation data at 1.2442 and then bounced to the upside. The rebound from the lows was capped by 1.2490. During the last hours, the pair has been steady moving around 1.2470. Economic number from the US (PPI) had no impact on the US dollar and now traders await Janet Yellen’s testimony. 

Yellen to be even more restrained and cautious than usual

Greenback is posting mix results across the board, while the pound is among the worst performers. The sterling was unable to trim losses and remains near daily lows in the market. 

Technical outlook 

“The short-term outlook is slightly bullish. The GBP/USD remains above the Ichi cloud top (1.2441) and 100-dma (1.2430), which suggest that the bias stays with the bulls. The resistance is at last week’s 1.2582 peak, then 1.2621 (76.4% fibo of February fall)”, wrote analyst from Growth Aces Research Team.

To the upside in the short-term, if the pair manages to rise back above 1.2500, where the 20-hour moving average currently stands, cable could gain some upside momentum, increasing the odds of a test of daily highs, that lie at 1.2545.