GBP/USD closed at more than one month high

GBP/USD closed at 1.2557 on Monday; the highest closing level since Feb 23 largely on the back of a broad based US dollar selling.

Blessing in disguise

The dollar selling appears to have come to a halt as the markets realize Trump’s failure to repeal the Obamacare is a blessing in disguise. Experts say Obamacare was bad, but Trumpcare would have been worst. The fact that it received no support suggests there are checks and balances in Washington. What it means is the low odds of Trump starting a trade war with China. 

Focus on Yellen

Yellen is scheduled to speak later today. The central bank chief may express concerns regarding the Trump’s ability to deliver tax cuts, although the wording is likely to be very soft. Dollar selling may resume if Yellen in any way suggests slower Fed rate hikes this year.

GBP/USD Technical Levels

The spot was last seen trading around 1.2567. A break above 1.2569 (Feb 24 high) would open doors for 1.26 (zero figure) and 1.2615 (previous day’s high). On the other hand, a breakdown of support at 1.2555 (session low) could yield a sell-off) to 1.2484 (previous day’s low) and 1.2469 (Thursday’s low).