GBP/USD re-attempts bids near 1.2470 post-US strikes on Syria

The GBP/USD pair is on a minor-recovery mode in mid-Asia, now looking to regain bids, as markets absorb the latest geo-political tensions triggered by the US military strike on the Syrian Shayrat airfield.

The US attacked Syria after the Islamic state engaged into a chemical attack, with the US President Trump noting, “Tonight I call on all civilized nations in seeking to end the slaughter and bloodshed in Syria.”

The reports of the US bombing Syria re-ignited risk-aversion across the markets, boosting the demand for safe-havens at the expense of the risk currencies such as the GBP.

Moreover, a rally in the US dollar across the board, in response to optimistic remarks from the US President Trump, following a dinner meeting with the Chinese President Xi, also collaborated to the overnight declines seen in cable.

Focus now shifts towards the fundamentals, with the UK manufacturing and industrial production data due on the cards ahead of the US NFP data, which will set the tone for the pair in the coming days.

GBP/USD Levels to consider            

Valeria Bednarik, Chief Analyst at FXStreet notes, “The pair bottomed at 1.2450 this Thursday, now the immediate support, although a more relevant one comes at 1.2410, and only below this last the pair can gain bearish momentum. Technical readings in the 4 hours chart present a neutral-to-bearish stance, as the price is holding around a modestly bearish 20 SMA, whilst technical indicators have turned lower around their mid-lines, with not enough directional strength to suggest the next move. Support levels: 1.2450 1.2410 1.2370 Resistance levels: 1.2490 1.2540 1.2585.”