GBP/USD keeps session tops near 1.2700 on GDP

The Sterling keeps the bid tone intact during the second half of the week, now lifting GBP/USD to fresh tops near 1.2700 the figure.

GBP/USD propped up by data

The pair is trading in fresh 6-week tops in the upper 1.2600s for the time being, gathering extra wings especially after the conciliatory speech by UK’s PM Theresa May last week and the subsequent decision of the Supreme Court, which ruled that Article 50 needs parliamentary approval to be triggered, all alleviating the likeliness of a ‘hard Brexit’ scenario.

GBP derived further strength after advanced GDP figures showed the UK economy is expected to expand at an annualized 2.2% during the October-December period and 0.6% inter-quarter, both surpassing initial estimates. The results add to the recent auspicious data in the UK and collaborate further with the ongoin rebound in Cable.

Back to the greenback, the US docket today includes Initial Claims followed by New Home Sales, Trade Balance figures and Markit’s Services PMI.

GBP/USD levels to consider

As of writing the pair is up 0.26% at 1.2668 and a break above 1.2729 (high Dec.13) would open the door to 1.2776 (high Dec.6) and then 1.3000 (psychological level). On the other hand, the immediate support aligns at 1.2507 (100-day sma) followed by 1.2488 (low Jan.25) and finally 1.2420 (55-day sma).