GBP/USD breaks higher to test 5-DMA ahead of UK data

The selling interest behind the US dollar gathers steam post-European open, now pushing GBP/USD to fresh highs beyond 1.24 handle.

GBP/USD await UK IP, US elections

The cable ended its Asian consolidation phase, and finally broke higher in Europe in an attempt to reclaim 5-DMA barrier, amid extended corrective slide in the US dollar against its major peers.

The major reversed almost a quarter of yesterday’s sell-off and now looks to resume its recent bullish trend, as markets price-in a solid UK industrial production report, which will be reported later this session.

However, limited reaction is expected on the UK data as the main market moving driver for the forex market today, remains the US elections due later in the American session.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2460 (5-DMA), 1.2500 (round number) and 1.2527 (Nov 7 high). While supports are lined up at 1.2348 (10-DMA) and 1.2300 (psychological levels) and below that at 1.2290 (20-DMA).

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