GBP/USD flat-lined just below 1.2400, UK data eyed

The pound stalled its bearish momentum versus the American dollar in the Asian session, keeping the GBP/USD pair in a tight range just shy of 1.24 handle.

GBP/USD meanders near lows

The cable failed once again to sustain above 1.24 barrier, and now consolidates yesterday’s steep drop triggered by broad based USD buying on increased expectations of a Clinton win at the US presidential elections due later today.

The major keeps the bearish bias intact, following a sharp reversal witnessed yesterday, as markets remain wary on reports that the UK government is drawing up a new bill to trigger Article 50 and begin the process of exiting the European Union.

Next in focus for the major remains the UK industrial and manufacturing production data due later in the European session. However, the economic releases from both the UK and US are expected to play second fiddle to any US elections-related news-flow in the day ahead.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2405 (daily high), 1.2451 (5-DMA) and 1.2500 (round number). While supports are lined up at 1.2344 (10-DMA) and 1.2300 (psychological levels) and below that at 1.2287 (20-DMA).

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