GBP/USD clings to gains above 50-DMA

The pound remains well bid against its American rival as we head into early Europe, with all eyes centered on the USD price-action amid holiday-thinned markets.

GBP/USD recedes from highs

The cable moved-off highs, although manages to keep some gains amid broad based US dollar weakness, as the buck attempts a minor correction after two back-to-back sessions of gains, triggered by Trump’s soothing victory speech. The major is now trading +0.11% higher at 1.2565, retreating from session highs posted at 1.2576 in early Asia.

However, further gains remain capped as sentiment remains quite mixed amid lower commodities’ prices and retreat in the Asian equities.

Calendar-wise, we have a second-tier data in construction output from the UK docket today, while the consumer sentiment data and FOMC member Fischer’s speech will be in focus during the NA session.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2600 (zero figure), 1.2650 (psychological levels) and 1.2700 (round number). While supports are lined up at 1.2552 (50-DMA) and 1.2504 (daily pivot) and below that at 1.2461 (5-DMA).

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