GBP/USD firm, close to daily highs around 1.2770

The Sterling is posting moderate gains vs. the greenback at the end of the week, with GBP/USD now trading in the upper end of the daily range ahead of the European opening.

GBP/USD weekly support stays near 1.2630

Cable is extending its upside momentum for the second session in a row on Friday, managing to put further distance from weekly lows in the 1.2630 region despite the prevailing bid tone surrounding the greenback.

GBP has come down to the current 1.2770/80 band after surpassing the critical barrier at 1.2800 the figure on Wednesday, while the hawkish-ish BoE meeting yesterday failed to give the pair extra legs. It is worth recalling that minutes from the BoE showed MPC voted 5-3 in order to keep the monetary status quo unchanged, with members McCafferty, Forbes and Saunders pushing for a 25bp rate hike.

After bottoming out in the 1.2630 region during the first half of the week, dip-buyers seem to have emerged and lifted spot beyond the 1.2800 handle, albeit easing some ground afterwards, all amidst higher-than-expected inflation figures during May, stagnant wage inflation pressures and disappointing retail sales during last month.

There are no data scheduled in the UK economy today, whereas housing starts, building permits and the advanced consumer sentiment gauge for the current month expected across the pond.

GBP/USD levels to consider

As of writing the pair is up 0.11% at 1.2771 facing the next resistance at 1.2800 (55-day sma) followed by 1.2818 (high Jun.14) and then 1.2860 (20-day sma). On the downside, a breakdown of 1.2632 (low Jun.9) would open the door to 1.2628 (100-day sma) and finally 1.2564 (200-day sma).