GBP/USD sideways, supported by the 20-DMA

The Pound is rising modestly against the Euro and the Swiss franc while is trading unchanged versus the US dollar. Cable is hovering around 1.2440/50, around the same level it closed yesterday. 

GBP/USD peaked today at 1.2500 and failed to rise further despite United Kingdom labor market data. The unemployed rate fell to 4.8%, a new low since the 2008/09 financial crisis. 

In the US data showed that the Producer Price Index (PPI) was unchanged in October, market consensus pointed toward a gain of 0.3% while Industrial Production also remained unchanged, analysts were expecting a +0.2% reading. Greenback dropped modestly after the reports but quickly recovered the lost ground. 

Tomorrow in the UK there will be more economic data with the retail sales report and in the US, with the released of the CPI index. 

Two relevant supports 

To the upside, today the pair found resistance at the 1.2500 area and lost strength. The decline found support above 1.2400. During the last hours, it has been trading between 1.2470 and 1.2410, moving sideways. 

Cable continues to hold above two relevant support areas: the 20-day moving average that stands at 1.2375 and the 1.2350 - 1.2370 zone that capped the downside last week. A  consolidation below could weaken the pound favoring an extension toward 1.2300 and 1.2270.

To learn more about this topic, check our video analysis:

GBPUSD from Tip TV Productions on Vimeo.