GBP/USD moves off daily lows

GBP/USD recovered from daily lows and erased early losses, although overall it continues to trade within its recent range at the beginning of the New York session.

Data showed, US Producer Price Index was unchanged in October and up 0.8% YoY, both below 0.3% and 1.2% expected respectively. The dollar weakened slightly following data, and gave up some of its recent gains, with the pound trading back at square one around 1.2450/60.

In the absence of first-tier data, investors continue to hope for fiscal stimulus and higher rates in the US following Trump’s surprise victory, which has been boosting the greenback.

Later on the session, US will release capacity utilisation, industrial production data and NAHB housing market index.

GBP/USD levels to consider

As for technical levels, next resistances could be found at 1.2506 (100-hour SMA), 1.2591 (Nov 14 high) and 1.2615 (50-day SMA). On the other hand, supports are seen at 1.2378 (Nov 15 low), 1.2347 (20-day SMA) and 1.2295 (Nov 3 low).

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

GBPUSD from Tip TV Productions on Vimeo.