The GBP/USD pair consolidates around 1.2600, having met buying interest on a pullback to 1.2560 late Thursday, after flirting with 1.2700 on hopes for a "soft Brexit." Not only UK data has been resilient to the possible consequences of a Brexit, but the Pound has also managed to resists post-US election's dollar strength. After a period of consolidation above 1.2300 the pair finally broke higher, with the next big figure to surpass to advance further being now 1.2700, as the pair retreated on approaches to the level already twice this month.
The pair maintains a modest bullish tone intraday, having rallied well above a daily ascendant trend line coming from a late October low of 1.2088, and the 4 hours chart shows that technical indicators are retreating modestly from overbought readings, but also that the price is holding above a bullish 20 SMA. Upcoming direction, however, will depend on the outcome of the US Nonfarm Payroll report.
Expectations are high after the ADP upward surprise earlier this week, but a rate hike in the US is pretty much priced in, which means that the figures should offer a strong deviation from market's expectations to actually trigger strong moves in the pair.
Anyway, the immediate resistance is today's high of 1.2648, with a break above it favoring an extension towards 1.2700. Beyond this last, the pair can extend up to the 1.2740/60 region. Below 1.2560 on the other hand, the risk turns towards the downside with 1.2510 and 1.2470 as the next intraday supports.
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