GBP/USD recovery stalled near 1.2450

The Sterling keeps the buoyancy intact vs. the dollar, although GBP/USD seems to have run out of steam in the mid-1.2400s for the time being.

GBP/USD remains bid after Trump

The pair keeps the erratic performance in line with the rest of the FX universe following the victory of Republican billionaire Donald Trump in the US elections.

In fact, spot dropped around 2 cents from the daily spike to the mid-1.2500s, bouncing off 1.2350 to the current levels above the 1.2400 handle while market participants continue to digest the unexpected event.

Back to the UK, September’s trade deficit has widened to £12.70 billion from the previous deficit at £11.15 billion, at the same time missing forecasts for a £11.20 billion deficit.

GBP/USD levels to consider

As of writing the pair is up 0.26% at 1.2416 facing the next resistance at 1.2559 (high Nov.4) followed by 1.2741 (55-day sma) and then 1.2945 (100-day sma). On the other hand, a break below 1.2288 (20-day sma) would open the door to 1.2086 (low Oct.11) and finally 1.1450 (low post-‘flash crash’ Oct.7).

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