GBP/USD clings to gains above 1.2400

The Sterling is following the broad-based upbeat mood in the risk-associated space on Thursday, taking GBP/USD to post decent gains in the 1.2430 area.

GBP/USD upside still capped at 1.2550

The pair is advancing moderately today in response to a renewed selling bias around the buck, while global markets continue their adjustment following the victory of Republican Donald Trump in the US elections on Wednesday.

Spot, however, remains capped by the area around recent highs near 1.2550, as sellers seem to be clustered in that region along with a persistent ‘sell-the-rallies’ stance.

In the meantime, GBP is expected to remain under pressure as the scenario around ‘Brexit’ remains everything but clear and, on the USD-side, expectations of a Fed’s rate hike by year-end stay firm.

GBP/USD levels to consider

As of writing the pair is up 0.23% at 1.2435 facing the next resistance at 1.2559 (high Nov.4) followed by 1.2726 (55-day sma) and then 1.2919 (100-day sma). On the other hand, a break below 1.2293 (20-day sma) would open the door to 1.2086 (low Oct.11) and finally 1.1450 (low post-‘flash crash’ Oct.7).