The GBP/USD pair has been a focal point for forex traders recently. The technical analysis reveals that the pair is currently consolidating around 1.2430. The 200 day Simple Moving Average (SMA) is acting as a strong resistance at 1.2450. IF the pair makes a daily close above this level and confirms it as support, the next bullish targets could be 1.2500 and 1.2600.
On the fundamental side, uninspiring macroeconomic data releases from the US have made it difficult for the US Dollar (USD) to find demand. The number of first time applications for unemployment benefits in the week ending November 11 rose to its highest level since August at 231000. Additionally industrial production contracted at a faster pace than anticipated in October.
The USD stays on the back foot as US Treasury bond yields continue to push lower following the sharp decline seen earlier in the week on soft inflation readings. Meanwhile the UK’s FTSE 100 index and US stock index futures trades are pointing to an improving risk mood.
In conclusion, both technical and fundamental indicators suggest potential bullish movement towards 1.2620 for the GBPUSD pair in the near term if it can sustain through the 1.2450 resistance level.
