GBP/USD consolidates around 1.2440 despite USD strength

The pound gained momentum in the market during the American session and it was able to hold against the US dollar. The Greenback rose in the market and printed fresh weekly highs against commodity currencies. 

GBP/USD continues to trade inside a range, between 1.2455 and 1.2410, marginally higher for the day. Still headed toward a weekly loss of around a hundred pips. It is the second weekly decline in a row. 

The decision of the Federal Reserve to raise interest rates and the more hawkish than expected FOMC projections boosted the US dollar in the market, pushing GBP/USD to the downside. The pair gained some support from the neutral bias of the Bank of England, that announced its decision to leave the purchase program and the key interest rate unchanged. 

During the week several economic reports were released in the UK. Labor market and retail sales number surpassed expectation but failed to favor the pound. Next week, a new estimation of the 3Q GDP and public sector numbers will be released. 

Technical levels 

To the upside, potential resistance levels might be seen at 1.2460/65 (daily high), 1.2510  and 1.2545/50 (Dec 8 & 9 low). Ont the flip side, support could be located at 1.2400 (American session low), 1.2375 (Dec 15 low) and 1.2300 (Nov 18 low).