GBP/USD struggles for direction near 1.2470

The Sterling is extending its consolidative theme on Thursday, taking GBP/USD to the 1.2460/70 band for the time being.

GBP/USD attention to USD, risk trends

The softer tone in the greenback in response to yesterday’s FOMC meeting has sponsored the spike to fresh highs above the 1.2500 handle, although the up move has quickly run out of steam ahead of the 20-day sma around 1.2510.

GBP stays rangebound so far in spite of another revision of Q4 GDP figures have surprised to the upside on Wednesday, showing the economy is now expected to expand 0.7% inter-quarter. However, an unexpected drop in Business Investment (-1.0% QoQ) has offset the positive news, adding some bearishness to the Sterling.

Absent releases in the UK calendar today, the pair’s attention should turn to the broad risk appetite trends and the US docket, where Initial Claims and the Chicago index are due along with the speech by Atlanta Fed D.Lockhart.

GBP/USD levels to consider

As of writing the pair is up 0.08% at 1.2468 and a break above 1.2509 (high Feb.22) would open the door to 1.2550 (high Feb.14) and finally 1.2715 (high Feb.2). On the other hand, the immediate support aligns at 1.2379 (low Feb.15) ahead of 1.2344 (low Feb.7) and finally 1.2250 (low Jan.19).