GBP/USD jumps to fresh daily highs near 1.2430, US GDP eyed

The bulls appear to have found support from a slight improvement in risk conditions, prompting fresh buying in the GBP/USD pair above 1.24 handle.

GBP/USD recovers to test 10-DMA at 1.2427

The GBP/USD pair caught a fresh bid-wave last minutes, as the risk currency GBP received fresh impetus from a minor turnaround in risk sentiment amid stalled selling in oil prices and positive US treasury yields.

Moreover, the cable also found support from ongoing weakness seen in EUR/GBP cross, as the EUR/USD pair remains under pressure, following yesterday’s dovish comments from ECB Chief Draghi.

Next of note for the major remains the UK net lending to individuals data, while the much-awaited US GDP report will be published in the US session, with limited reaction expected on the release.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2445/49 (5 & 20-DMA), 1.2504 (daily R1) and 1.2533 (Nov 28 high). While supports are seen at 1.2381 (50-DMA/ previous low) and 1.2357 (Nov 23 low) and below that at 1.2308 (Nov 21 low).