GBP/USD spikes to 1.25 neighborhood after Mnuchin's interview

A fresh wave of greenback selling pressure emerged during early NA session, lifting the GBP/USD major to daily tops closer to 1.2500 psychological mark.

The pair caught fresh bids and extended Wednesday's rebound from the vicinity of 100-day SMA after the US Treasury Secretary Steve Mnuchin, at today's interview on CNBC, failed to provide any details of the proposed tax reforms. Against the backdrop of Wednesday's less hawkish FOMC meeting minutes, continuous uncertainty over Trump's fiscal policies further diminished prospects for any immediate rate-hike move at the Fed's upcoming meeting in March.

With no relevant fundamental triggers from the UK economic docket, the pair's latest leg of up-move could also be attributed to some short-covering. It, however, remains to be seen if the current momentum is able to assit the pair to break through recent trading range or again runs through fresh offers near yesterday's high around 1.2510 area. 

Next on tap would be the release of weekly jobless claims data from the US, which would be looked upon for some immediate respite for the US Dollar bulls and grab some short-term trading opportunities.

Technical outlook

A follow through buying interest above 1.2500-10 area has the potential to continue boosting the pair further towards 1.2545-50 intermediate resistance, en-route 1.2580 level (Feb. 9 high).

On the flip side, reversal from current resistance, and a subsequent drop back below 1.2450 level, seems to drag the pair towards 1.2415-10 region (100-day SMA) below which the pair is likely to turn vulnerable and accelerate the slide towards 1.2385-80 support.