GBP/USD struggles to gather traction, near 1.2400

The British Pound is navigating within a narrow range vs. the buck today, with GBP/USD managing to keep the trade above the 1.2400 handle so far.

GBP/USD attention to UK, US data

The pair is extending its sideline theme in the lower end of the range around 1.2400 the figure, shedding more than a cent since yesterday’s tops in the 1.2530/35 band.

The greenback has recovered the ground lost at the beginning of the week, although a cautious tone seems to prevail among investors in light of the upcoming risk events: the OPEC meeting (Wednesday), US Non-farm Payrolls (Friday) and the Italian Referendum (Sunday).

Data wise today, Mortgage Approvals, BoE’s Consumer Credit and Net Lending to Individuals are all due in the UK, while another revision of Q3 GDP, CB’s Consumer Confidence and speeches by NY Fed W.Dudley (permanent voter, neutral) and J.Powell (permanent voter, neutral) are expected in the US docket.

On the positioning side, GBP speculative net shorts have dropped to the lowest level since mid-September and Open Interest stayed at 4-week lows during the week ended on November 22 according to the latest CFTC report, reflecting the better tone seen in GBP in past weeks.

GBP/USD levels to consider

As of writing the pair is losing 0.06% at 1.2407 facing the next support at 1.2308 (low Nov.21) followed by 1.2297 (low Nov.18) and finally 1.2081 (low Oct.25). On the flip side, a breakout of 1.2526 (55-day sma) would expose 1.2533 (high Nov.28) and then 1.2675 (high Nov.11).