GBP/USD surges to fresh session peak near 1.2350

The GBP/USD pair maintained its strong bid tone and extended its appreciating move further beyond 1.2300 handle, to a fresh session peak level around mid-1.2300s. 

In absence of any fresh news / development, the pair's latest leg of up-move could be attributed to some stops getting triggered on a decisive move above 1.2315-20 strong horizontal resistance. It would, however, be prudent to wait for a follow through action to see if the move was backed by genuine buying or was just a stop-run. 

Meanwhile, market participants now look forward to further details of President-elect Donald Trump’s proposed fiscal policies and hence, might have been inclined to lighten their bullish US Dollar bets. 

A relatively lighter US economic docket, featuring the only relevant release of Chicago PMI print for December would now be looked upon for some immediate respite for USD bulls. 

Technical levels to watch

Immediate resistance on the upside is pegged near 1.2370 level above which the pair is likely to head towards reclaiming 1.2400 handle en-route 50-day SMA resistance near 1.2420-25 region. On the downside, previous resistance near 1.2320-15 region now becomes immediate support, which if broken seems to drag the pair back below 1.2300 handle towards 1.2280 support area.