GBP/USD unmoved at 1.2750 after US data

The GBP/USD pair had a muted reaction to US economic data and held on to its gains to mid-1.2700s, albeit remained below two-month highs touched during early European session. 

According to the data released from the US, the revised non-farm productivity for Q3 remained unchanged at 3.1% but was lower than 3.3% expected. Meanwhile, the US international trade deficit bulged more-than-expected and came-in at $42.6 billion during October, sharply higher from September's $36.2 and also higher-than a deficit of $41.80 billion expected. 

The data provide little impetus as investors preferred to remain on the sidelines after yesterday's volatile trading session and ahead of next week's much awaited FOMC meeting. 

Today's US economic docket also features the release of factory orders for the month of October and consensus estimates point to a m-o-m growth of 2.6%.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, “Technically, the 4 hours chart shows that the Momentum indicator is fading within positive territory, but also that the RSI maintains its upward slope around 71. Also, the 20 SMA continues heading sharply higher below the current level, around 1.2680. Overall, the upside is favored towards 1.2793, July 6th daily low, and the immediate resistance en route to 1.2860, August monthly low.”

She further writes, “The immediate short term support comes at 1.2730, with a break below it exposing the 1.2680 dynamic support.”