GBP/USD consolidating above 1.2300, focus on BoE

The upbeat momentum remains firm around the Sterling during the second half of the week, with GBP/USD advancing further north of the 1.2300 handle.

GBP/USD attention to BoE, High Court

In the meantime, the pair is advancing uninterruptedly since Friday backed by a renewed and persistent selling mood surrounding the US dollar, as US political effervescence keeps driving the sentiment.

Key day for the British pound as the Bank of England will hold its monetary policy meeting, while the High Court is expected to rule on the involvement of Parliament in triggering Article 50.

Across the pond, the usual weekly report on the US labour market is due followed by Markit’s Services PMI, the ISM Non-manufacturing and Factory Orders during September.

GBP/USD levels to consider

As of writing the pair is gaining 0.27% at 1.2340 facing the next resistance at 1.2377 (high Oct.11) followed by 1.2585 (2-month resistance line) and finally 1.2791 (55-day sma). On the other hand, a breach of 1.2086 (low Oct.11) would open the door for a test of 1.1450 (low post-‘flash crash’ Oct.7).