GBP/USD remains capped by 1.4850, dollar shrugs off data

FXStreet (Córdoba) – The pound managed to reverse early losses against the dollar and climbed to fresh daily highs at the beginning of the American session in quiet, thin trade.

The US dollar continues to move back and forth within recent ranges versus most rivals, unable to set short-term direction as investors interest continues to decline and with economic data having virtually no impact.

GBP/USD fell briefly below 1.4800 to a low of 1.4792, from where it bounced, erasing daily losses. Cable is currently trading at 1.4830, 0.13% above its opening price, having reached a high of 1.4846 in recent dealings.

On the data front, US pending home sales fell 0.9% in November, missing by far expectations of a 0.5% increase, but the dollar managed to shrug off the disappointing reading. Next on tap, EIA will publish its weekly crude inventories report.

GBP/USD technical levels

In terms of levels, immediate resistances line up at 1.4882 (10-day SMA), 1.4900 (psychological level), 1.4949 (Dec 24 & 18 highs), and the 1.5000/05 zone (psychological level/21-day SMA). On the other hand, next supports are seen at 1.4785 (Dec 29 low), 1.4700 (Apr 15 low/psychological level) and 1.4604 (Apr 14 low) ahead of 1.4569 (2015 low).

The pound managed to reverse early losses against the dollar and climbed to fresh daily highs at the beginning of the American session in quiet, thin trade.

(Market News Provided by FXstreet)