The Pound Sterling (GBP) advances to a new 12-week high against the US Dollar (USD) courtesy of better-than-expected data revealed on Thursday, which sparked a sell-off of Gilts; consequently, UK bond yields rose. The GBP/USD is trading at 1.2606 after hitting a high of 1.2615.
PexelsGBP/USD reaches new heights, bolstered by UK bond yield rise and mixed US business activity indicatorsS&P Global revealed that business activity in the United States (US) remains solid after the Services and Composite PMIs exceeded forecasts. Nevertheless, the Manufacturing PMI slipped below the 50 expansion/contraction threshold, painting a mixed scenario for the economy. In the next week, the Institute for Supply Management (ISM) will update the readings for December.Aside from this, in the UK, Consumer Confidence improved, while S&P Global/CIPS figures show business outlook is improving, even though manufacturing activity stood at recessionary territory for the sixth consecutive month.Recently, the Bank of England (BoE) Chief Economist Huw Pill insisted the central banks would continue to fight inflation despite the stagnating outlook for the British economy. Although some lawmakers had stressed the need for lower rates, Pill stated that it was too early to consider such a move.Even though inflation eased from 6.7% to 4.6% in October, inflation remains twice the BoE’s goal of 2%.The Autumn Statement revealed by the UK Chancellor of the Exchequer, Jeremy Hunt, was well received by investors. Nevertheless, estimates for growth and inflation were pessimistic at a time when market participants estimated the UK economy to dip into a recession.Next week, the UK economic docket will feature a speech by the BoE Governor Andrew Bailey. On the US front, the calendar will feature Consumer Confidence, Fed speakers, a preliminary reading for GDP, inflation data and the ISM Manufacturing PMI. GBP/USD Price Analysis: Technical outlookThe GBP/USD daily chart portrays the pair in a bullish run that could extend toward the psychological 1.2700 figure. A breach of that level could expose the August 30 swing high at 1.2746, followed by the August 22 high at 1.2800. On the other hand, if the pair slides below 1.2600, the November 23 high at 1.2569 would emerge as first support, followed by today’s low of 1.2524.More By This Author:Forex Today: Dollar Remained Vulnerable, Focus Turned To Inflation DataEUR/JPY Sets A Late High For The Week Above 163.60 In Friday Risk Rally Silver Sees Late Jump On Friday, Touches 12-Week High At $24.30
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