GBP/USD: Bulls gather pace, prints fresh 2-month highs

Dhwani Mehta FXStreet

After a brief phase of consolidation in the late-Asian session, the GBP/USD pair finally regained momentum and broke higher, now receding slightly from fresh two-month highs at 1.2763, still up +0.19% so far.

The cable remains strongly bid and extends its bullish momentum for the sixth straight session, as the US dollar continues to reverse its broad rally to fresh multi-year tops, in a pullback to Trump-win induced upsurge.

While there seems to be no major catalyst behind the latest leg higher except for a retreat in the US treasury yields, which boost the demand for the GPB as an alternative higher-yielding asset.

In absence of fresh economic data from the UK calendar, the major will get influenced by the broader market sentiment ahead of the US trade and factory orders due later in the American session.

GBP/USD Levels to consider

In terms of technical levels, upside barriers are lined up at 1.2765 (2-month top), 1.2779 (daily R1) and 1.2800 (round number). While supports are seen at 1.2694 (5-DMA) and 1.2623 (previous low) and below that at 1.2583 (10-DMA).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Overbought	Shrinking
1H	Bullish	Neutral	Expanding
4H	Bearish	Neutral	Low
1D	Bullish	Neutral	Expanding
1W	Bearish	Oversold	Expanding
Updated Dec 5, 07:15 GMT

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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