GBP/USD hovering near session lows

Earlier today the GBP/USD bounced to a session high at 1.2570. Yesterday the Pound had fallen under the sword of the spiking dollar. That saw the GBP/USD fall back from a high earlier in the day, at 1.2708. That high was just short of the high seen on Tuesday, at 1.2709. Perhaps in that sense it might have severed as a warning, but that was far from clear at the time. So, the slide that followed the US CPI data saw the GBP/USD slump to a low at 1.2520. It later closed in the US at 1.2540. That close was some way below the 200 day moving average and it was the first time the Pound has set a daily close below that level since April 2. That 200 day moving average is in place right now at 1.2586. The range seen so far today has been covered by 1.2530 to 1.2570. So, as you can see, the earlier session stalled short of 1.2586. To some extent the Pound is not the focus this afternoon, but that does not rule out supply/demand based on how the EUR/GBP trades after the ECB policy decision. The GBP/USD is currently trading unchanged from the US close, at 1.2540