GBP/USD rejected 5-DMA, back around 1.2400

The recovery in the GBP/USD pair lost legs just below 5-DMA at 1.2436, as the bears tightened grip and sent the rate back below 1.24 handle. However, the spot found fresh buyers lurking around 1.2380 region and swung back to 1.24 barrier, where it now wavers.

The major came under fresh selling pressure and gave up 1.24 handle once again after the UK goods trade deficit expanded in Sept on the back of higher imports, which outweigh any benefit to the exporters on a weaker GBP.

Meanwhile, the US dollar keeps the offered tone intact on the back of a Trump victory, despite a recovery in risk sentiment, and hence keeps the sentiment around GBP/USD buoyed somewhat.

GBP/USD: Technical levels:

Key Resistances: 1.2559 (post-NFP high), 1.2626 (Flash crash high), 1.2700 (round figure)

Key Supports: 1.2355 (Daily low), 1.2300 (zero figure), 1.2218 (Nov low)

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