GBP/USD fades a spike to 1.2550 as risk-off persists

The GBP/USD pair failed once again near 1.2550 resistance and reverted to the familiar range around 1.2530/35 region, closely tracking the USD price-action amid a lack of fundamental triggers and low volumes. The European and London markets are closed today in observance of Easter Monday.

A recovery in the US dollar from a dip to 100.10 levels against its main competitors, stalled the upside attempt in the spot over the last hour, leaving the prices confined within a 25-pips tight range so far this Monday.

Additionally, widespread risk-aversion in the wake of looming geopolitical tensions over the Korean peninsula, also keeps the sentiment undermined around the risk currency GBP.  Attention now turns towards the US macro news, which includes the regional manufacturing gauge and NAHB housing index, for fresh impetus on the buck.

GBP/USD Levels to consider            

Momentum above 1.2575 (Thursday’s high) could lift the pair above 1.26 handle, beyond which a test of March 27 high at 1.2618 is imminent. Conversely, a break below 1.2525/22 (daily low/ 200-DMA), leading to a subsequent break below 1.2480 horizontal support is likely to drag the pair towards testing its next support near 1.2425-20 zone.