GBP/USD steady in a range below 1.3400

• GBP/USD moves sideways between 1.3365 and 1.3395. 
• Low volume and limited price action ahead of holidays 

The GBP/USD pair continues to trade within a 40-pip range below 1.3400. After UK and US economic data the pair continued to trade sideways on a quiet session ahead of Christmas holidays. 

UK and US data 

In the US the annual core-PCE price index, rose to 1.8% from 1.6% in November. Personal spending climbed by 0.6% in November while Personal Income rose 0.3% (below the 0.4% expected). On another report, new home sales jumped 17.5% in November (biggest monthly rise in 25 years), significantly above expectorations; the annual rate rose to 733K surpassing the 654K expected. The last report was the Consumer Confidence Index measured by the University of Michigan that dropped unexpectedly to 95.9. 

The greenback reacted with marginal gains to the data. The US Dollar Index rose to 93.51 but then pulled back to 93.40. It was up by 0.1%. 

Earlier today, in the UK, the Office for National Statistics reported that the economy expanded during the third quarter at 0.4%, in line with first estimates and 1.7% over the year.

Markets remain quiet despite reports. GBP/USD continues to move in a small range, consolidating a weekly gain of around 50 pips. 

Technical levels to watch

To the upside, the immediate resistance area is seen at 1.3400 and above at 1.3420 (weekly high) and 1.3465  (Dec 14 high). On the flip side, support might lie at 1.3355 (Dec 22 low), 1.3330 (Dec 18 & 22 low) and 1.3300 (Dec 15 low).