GBP/USD in 5-week tops above 1.2600

The upside momentum around the Sterling remains intact so far this week, taking GBP/USD to fresh multi-week tops above the 1.2600 handle.

GBP/USD stronger despite USD-buying, EUR/GBP

Spot is on its way to close its second consecutive week with gains so far today, including fresh 5-week tops above 1.2650, the highest level since the GBP’s ‘flash crash’ in early October.

Cable is also deriving support from the persistent drop in EUR/GBP, as the selling pressure around the single currency is everything but abated, particularly following Trump’s victory in the US elections.

GBP appears to have derived additional support after elected US President D.Trump advocated for a continuation of firm trade conditions between the US and the UK.

Later in the session, US advanced Reuters/Michigan index for the month of November is due followed by the speech by FOMC’s S.Fischer (permanent voter, hawkish).

GBP/USD levels to consider

As of writing the pair is up 0.60% at 1.2624 facing the next resistance at 1.2718 (55-day sma) ahead of 1.2910 (100-day sma) and finally 1.2796 (low Jul.6). On the other hand, a break below 1.2349 (low Nov.9) would open the door to 1.2320 (20-day sma) and finally 1.2081 (low Oct.25).

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