GBP/USD through 1.2500 post-data

The British Pound is now extending its rebound from daily lows vs. the buck, with GBP/USD testing once again the 1.2500 area and above in the wake of UK releases.

GBP/USD supported near 1.2470

Spot is now looking to gather further traction after Industrial Production expanded at a monthly 1.1% in December, while Manufacturing Production climbed 2.1% inter-month. Both prints have come in above expectations, lending some support to the Sterling.

Further results saw Construction Output surpassing forecasts during the same period, up 1.8% vs. 1.0% expected and the trade deficit shrunk to £10.89 billion.

GBP stays quite resilient despite the correction from yesterday’s peaks, as optimism among investors on the Brexit negotiations seems to be lending extra support to the Sterling and bolstering its demand. Additionally, the speculative community kept trimming its net shorts positions during last week, as seen in the latest CFTC report.

Still in the UK, NIESR GDP Estimate is next on tap (0.5% prev.). Across the pond, Export/Import Price index are due seconded by the advanced Consumer Sentiment gauge for the current month.

GBP/USD levels to consider

As of writing the pair is up 0.13% at 1.2513 and a breakout of 1.2585 (high Feb.9) would open the door to 1.2680 (high Jan.26) and finally 1.2715 (high Feb.2). On the flip side, the immediate support aligns at 1.2477 (20-day sma) followed by 1.2433 (55-day sma) and finally 1.2344 (low Feb.7).