GBP/USD rises slowly to fresh daily highs above 1.2725

  • Pound consolidates modest gains versus US Dollar and Euro.
  • Cable recovers from yesterday’s losses remains in range. 

The GBP/USD pair printed a fresh daily high at 1.2728 and as of writing trades near the top, holding a bullish tone but still on the range of the last few days. 

The Pound is among the top performers in Europe, despite all the Brexit and political uncertainty around the UK. Better-than-expected UK employment data favored the pound on Tuesday. The unemployment rate held at 3.8% for the 3 months ending April, wages rose 3.1% and previous data was revised higher. “The UK's macro backdrop remains mixed and volatile, but some MPC members have broadcast a fairly hawkish message to investors this week. These voices may grow more vocal if growth rebounds. Strategically, sterling still has some difficult days ahead of it as political concerns dominate,” mentioned TDS analysts. 

In the US, PPI numbers were mostly ignored by market participants. Tomorrow CPI data is due. The greenback is posting mix results across the board as volatility in the fx market remains lows. 

Short-term Levels to watch 

The pair continues to move sideways, around 1.2700 that is also the 20-day moving average. To the upside, resistance levels might be located at 1.2745 (June 5 high), followed by 1.2765 (June 7 high) and 1.2800. On the flip side, support levels could be seen at 1.2705 (American session low), 1.2670 (June 11 low) and 1.2650 (June 6 low). 

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