GBP/USD flirting with highs below 1.2500 ahead of data

The Sterling is trading on a firm fashion vs. the greenback on Wednesday, now helping GBP/USD to test the upper bound of the range in the 1.2485/90 band.

GBP/USD attention to UK data

The pair is advancing for the first time after two consecutive pullbacks, extending its consolidative theme below last week’s tops near 1.2680 ahead of key labour market figures in the UK due later.

The renewed offered bias in the buck is collaborating with the broad-based recovery in the risk-associated space today, after the US Dollar Index clinched fresh yearly tops on Tuesday.

Spot remains under pressure nonetheless, as expectations of a rate hike by the Federal Reserve should continue to support the case for a stronger greenback, while uncertainty around ‘soft/hard Brexit’ along with the triggering of Article 50 would keep the pressure on the domestic front.

From the positioning perspective, speculative GBP longs have dropped to 3-week lows while net shorts climbed to the highest level in the last three weeks during the week ended on November 8 and as shown by the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is gaining 0.22% at 1.2483 facing the next hurdle at 1.2675 (high Nov.11) followed by 1.2683 (55-day sma) and then 1.2796 (low Jul.6). On the flip side, a breach of 1.2378 (low Nov.15) would aim for 1.22352 (20-day sma) and finally 1.2349 (low Nov.9).