GBP/USD quiet around 1.2350, eyeing US data for fresh impetus

Haresh Menghani FXStreet

The GBP/USD pair witnessed a tepid recovery bounce on Thursday and spiked to 1.2380 region during early European session, but remained confined within a broader trading range.

The pair quickly faded the spike and retraced sharply to currently trade around 1.2350 region, testing session low. The US Dollar extended its retracement from 14-year highs and was seen assisting the pair's recovery on Thursday amid thin market liquidity conditions.

With an empty UK economic docket, investors seemed inclined to lock-in some profits and unwound some of their bearish positions ahead of important US macro data, including the final GDP print for third-quarter of 2016, durable goods order for November, personal income / spending data along with the Fed's preferred inflation gauge - core PCE price index, due later during NA session.

In the meantime, the pair might continue with its dull trading action amid thin market liquidity conditions ahead of year-end holiday season.

Technical levels to watch

On the upside, 1.2400 handle remains immediate resistance above which the pair seems to immediately dart towards 50-day SMA resistance near 1.2420-25 region. A follow through buying interest above 50-day SMA should trigger a short-covering rally back towards 1.2500 psychological mark.

On the flip side, weakness below session low support near 1.2345 region might continue to take support around 1.2315-10 region, which broken decisively could accelerate the slide towards 1.2240-35 intermediate support en-route 1.2200 round figure mark.

1. R3 1.2461
2. R2 1.2426
3. R1 1.2393
PP 1.2358
1. S1 1.2325
2. S2 1.2291
3. S3 1.2258

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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