GBP/USD hovers below 1.2500 ahead of US CPI

GBP/USD climbed to retest the 1.2500 area on Thursday as better-than-expected UK retail sales data boosted the pound. However, the advance lost upward momentum, leaving the pair in a tight range nearby as investors focus turns to US CPI data and Fed's Yellen testimony before the Joint Economic Committee of Congress.

GBP/USD climbed to 1.2503 during the European session before finding resistance, but the downside was immediately contained by the 200-hour SMA around 1.2460. At time of writing, GBP/USD is trading at 1.2485, up 0.37% on the day.

UK retail sales rose  1.9% in October, beating expectations of a 0.4% gain. Over the 12 months to October, sales rose 7.4%, above the 5.3% increase expected.

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.