GBP/USD (current price: 1.2693)
The pair rocketed higher on Friday, hitting 1.27 for the first time since the end of September. The Pound was helped by the better than expected Construction PMI, which came in at 52.8. The consensus estimate was 52.3, but the British economy keeps on showing resilience since the Brexit vote. The slightly negative U.S. releases also pushed the cross higher in the second half of the day. The long-term picture remains neutral, despite the strong rally since the U.S. election.
Our assessment: Cable still trades well below the declining 200-day Moving Average. The indicator is now found at 1.3, with strong resistance at 1.2850, and support at 1.2350.
