Currently, GBP/USD is trading at 1.2499, up 0.05% on the day, having posted a daily high at 1.2517 and low at 1.2420.
Sterling has been robust in the wake of renewed pressures from the greenback across the board after a series of good enough data this week that leaves a Fed hike fully on the table for December.
However, as analysts at Scotiabank noted, the data fro the UK is not so pretty, “UK consumers are less confident about the outlook; the November Gfk reading fell to -8, well below forecasts (-4), from -3 in October. This was the lowest level since July. All five subcomponents fell in the survey, suggesting consumers are “resolutely gloomy” on the outlook, according to Gfk. In addition, the BoE’s latest stress tests on local banks revealed a “fail” mark for RBS (forcing it to boost capital plans) and highlighted capital inadequacies at Barclays and Standard Chartered, according to Bloomberg.”
Meanwhile, the pound can garner some support on the oil price rallying over 9% today on the back of the OPEC accord that was earlier confirmed by Al-Sada, Oil rallies 9% on OPEC accord to cut production finally reached, confirmed by Al-Sada
GBP/USD short-term technicals: bearish
“Cable experienced another mini-meltdown earlier in the session when spot dropped below 1.25 and quickly fell to the low 1.24s without touching the sides. GBP/USD is holding near the low end of the post October consolidation band (support here is 1.2380) but still looks vulnerable to the downside. We see resistance at 1.2505/10 now and look to fade GBP gains,” explained analysts at Scotiabank.
Spot is presently trading at 1.2499, and next resistance can be seen at 1.2517 (Daily High), 1.2528 (Yesterday’s High), 1.2548 (Weekly Classic R1), 1.2551 (Daily Classic R1) and 1.2598 (Monthly High). Support below can be found at 1.2493 (Daily Open), 1.2493 (Weekly High), 1.2476 (Hourly 20 EMA), 1.2470 (Daily Classic PP) and 1.2457 (Hourly 100 SMA).