GBP/USD climbs back above 1.2450 in volatile trade after US election

GBP/USD continues to trade in a choppy manner, unable to set a decisive direction as investors digest the US presidential election (unexpected) outcome.

Republican candidate and billionaire Donald Trump became the 25th elected US president to take over office in January. The unexpected victory trigger some volatility across markets, with risk aversion as the knee-jerk reaction. However, as hours pass by and the dust settles markets begin to stabilize. 

In tandem, GBP/USD moved initially up to a peak of 1.2545 but then retraced completely its rally, falling to the 1.2350 zone. Over the last hours, Cable has been edging higher, and it was last trading at 1.2450, still up 0.65% on the day.

GBP/USD technical levels

In terms of technical levels, next resistances are seen at 1.2556 (Nov 4 high), 1.2600 (psychological level) and 1.2698 (50-day SMA). On the flip side, supports could be faced at 1.2330 (10-day SMA), 1.2205 (Nov 1 low) and 1.2081 (Oct 25 low).