GBP/USD offered near hourly 50-MA

After having failed to take out hourly 50-MA through NY session and early Asian session, the GBP/USD pair ran into fresh offers with the bird now hovering around 1.2730 levels.

Two-year treasury yield rises

The two-year treasury yield in US,which represents short-term rate hike bets, advanced almost two basis points in Asia as investors reacted to increased prospects of fed rate hike following yesterday’s strong US ISM non-manufacturing PMI release.

Consequently, the American dollar is solidly bid in Asia. Furthermore, markets are also worried about a potential ‘hard Brexit’. Hence, GBP/USD is on the backfoot once again.

GBP/USD Technical Levels

A break above hourly 50-MA level of 1.2751 would open doors for 1.2789 (previous post low), above which the spot could target 1.2836 (hourly 100-MA). On the lower side, breach of support at 1.2685 (yesterday’s low) would expose 1.2590 (127.2% of 1.7191-1.4566-1.5930).