GBP/USD (current price: 1.2560)
Cable remained among the most active pairs on Thursday, as the Pound continued higher in early trading. The pair turned sharply lower in the second half of the day, finishing more than 1% below its intraday high. The British Prelim GDP print was slightly better than expected, but that wasn’t enough to maintain the bullish momentum of the Pound. U.S. New Home Sales and weekly Initial Jobless Claims missed expectations, but the Dollar still finished higher as stock markets rallied.
Our assessment: The pair is still in a steep short-term advance despite yesterday’s reversal. Strong resistance is ahead near the 1.2850 level, with support found at 1.25.
