GBP/USD holds 1.2500 again but will it continue?

On December 30 the GBP/USD resisted another attempt to break below the well noted double bottom on the charts, at 1.2501 and 1.2505.  As reported, the low seen was set at 1.2507 and the rebound that followed took it back up to 1.2569 on New Years eve. However, that rebound was not sustained and the Pound later posted a 2024 close at 1.2517. There was no trading yesterday of course and earlier today the GBP/USD had another look close to that technical support level, falling to 1.2508. Well, so far it has held again and rebounded back to 1.2541 since then. So, as you can see, there are still buyers stepping in ahead of that 1.25 handle. As noted here earlier in the week, one reason for the support could be due to the elevated level of UK bond yields relative to the US, but more recently that gap has now been closed and that could mean 1.2500 may come under threat the next time it is put to the test. We shall see on that. The GBP/USD is currently trading at 1.2530