GBP/USD: bears back in play with eyes on a break of key 50-d sma

Currently, GBP/USD is trading at 1.2460, down -0.52% on the day, having posted a daily high at 1.2550 and low at 1.2443

GBP/USD has been on the back foot again as Yellen's comments stirred up a frenzy for the greenback that had otherwise already been on the front foot across the board at the start of this week.

• Fed's Yellen: Cannot say whether rate hike will come in March or June
• Fed's Yellen: Some policies being discussed in Washington may raise deficits or help productivity
• Fed's Yellen: Will wait to gain further clarity on economic policy changes
• Waiting too long to tighten would be unwise - Fed's J.Yellen
• More rate hikes may be appropriate in upcoming meetings - Fed's J.Yellen
• Fed's Yellen agrees with core principles of Trump's executive order on financial reform

 Markets have scrambled to stocks, away from the bonds, creating yields to rise and demand for the dollar as an alternative to other safe havens. There are mounting risks as we approach the EU elections with Holland up before France and Article 50 within the rise in populism in a concern to global markets in the face of Trump's populist administration and potential ramifications for global trade. 

GBP/USD levels

GBP/USD has so far held above a key technical support at the 50-d sma at 1.2387 and this the top of the channel at 1.2695 still is in sight. However, the FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bearish and given the current fundamentals an strong dollar environment, there is risk to 1.2253 and the 18th January low. "Sub 1.2250 would alleviate immediate upside pressure and trigger losses to the 1.1988/80 recent low," according to analysts at Commerzbank, adding, "Above 1.2695 would allow for further strength to the 1.2776 December high. Between here and 1.2836 lies several Fibonacci retracements and major resistance and we suspect that it will struggle here."