GBP/USD remains weak, supported near 1.2400

The Sterling keeps the negative tone on Tuesday, with GBP/USD hovering over the 1.2420 area after briefly testing the 1.2400 neighbourhood.

GBP/USD muted on US data

Spot remained apathetic after US Existing Homes Sales have surprised markets to the upside during October, increasing by 5.6 million units. Further US data saw the Richmond Fed Manufacturing Index at 4 for the current month vs. 1 expected and October’s -4.

The pair remains in the negative territory so far today, eroding part of yesterday’s significant bull run although with gains somewhat capped in the 1.2500/15 area.

Previously in the UK, Public Sector Net Borrowing decreased to £4.30 billion during last month, while November’s Industrial Trends Survey by CBI improved to -3.

GBP/USD levels to consider

As of writing the pair is losing 0.51% at 1.2428 a breach of 1.2308 (low Nov.21) would open the door to 1.2297 (low Nov.18) and finally 1.2081 (low Oct.25). On the upside, the next hurdle lines up at 1.2514 (high Nov.21) followed by 1.2599 (55-day sma) and then 1.2675 (high Nov.11).

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