GBP/USD clings to gains around 1.2300 ahead of Beige Book

The British pound is clinging to its daily gains vs. the greenback, taking GBP/USD to levels above the 1.2300 key barrier.

GBP/USD boosted by data, Fedspeak eyed

The pair is looking to add to yesterday’s advance against the backdrop of the persistent selling bias around the US dollar.

The upside momentum in GBP has been boosted further by upbeat results from the UK’s labour market report seen earlier in the session and Tuesday’s higher-than-expected inflation figures during last month.

Data wise across the pond, mixed results from the US housing sector during September prompted the buck to cut earlier losses ahead of the Fed’s Beige Book and speeches by Philly Fed P.Harker (2017 voter, hawkish) and Dallas Fed R.Kaplan (2017 voter, neutral).

Further news in the UK cites Chancellor P.Hammond saying the country needs to reduce net migration in order to protect the domestic economy, adding that the government has instruments to harness QE’s distributional impact in case of need.

GBP/USD levels to consider

As of writing the pair is gaining 0.01% at 1.2300 and a break above 1.2327 (high Oct.18) would aim for 1.2377 (high Oct.11) and finally 1.2614 (20-day sma). On the flip side, the immediate support lines up at 1.2086 (low Oct.11) ahead of 1.1450 (low post-‘flash crash’ Oct.7).