GBP/USD searching for direction

GBP/USD extended its consolidative pattern on Friday, with the pair trading comfortably between 1.2400 and 1.2500, unable to set short-term direction.

GBPUSD recovered from lows following the release of UK GDP data, which showed economy expanded as expected in the third quarter 0.5% QoQ and 2.3% YoY. However, the upside was capped by the 1.2470 region. At time of writing, the pair is trading at 1.2435, a few pips below its opening price.

Although the longer-term bias remains negative, the pound has proven to be pretty resilient to USD strength, triggered by Trump’s victory in US elections and expectations of faster pace of tightening by the Fed. GBP has been amid the top performers across the board, keeping losses limited.

GBP/USD levels to watch

In terms of technical levels, next supports are seen at 1.2400 (Nov 24 low/psychological level), 1.2359 (Nov 23 low), 1.2312 (Nov 21 low) and 1.2300 (Nov 18 low/psychological level). On the other hand, resistances line up at 1.2500/03 (psychological level/50-day SMA), 1.2591 (Nov 14 high) and 1.2673 (Nov 11 high).

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

GBPUSD from Tip TV Productions on Vimeo.