GBP/USD climbs further to fresh 1-month highs

GBP/USD extended gains during the New York session, reaching its highest level since the “flash crash” episode in early October.

GBP/USD has been on recovery mode over the last sessions, having risen five out of the last six trading days, with yesterday’s BoE statement and a High Court rule giving the pound additional tailwinds.

GBP/USD broke through several resistance levels and reached a peak of 1.2546 in recent dealings. At time of writing, the pair is trading at 1.2540, recording a 0.65% daily gain.

The US nonfarm payrolls report for Octobe came in mixed, barely tingling the US dollar. US economy created 161,000 new jobs in October, below the 175,000 expected, but September and August’s reading were upwardly revised by a combined 44,000 jobs. The jobless rate fell to 4.9%, as expected. Average hourly earnings for private-sector workers rose 2.8% YoY in October, the strongest annual wage growth since June 2009.  

GBP/USD levels to watch

As for technical levels, immediate resistances could be found at 1.2600 (psychological level) and 1.2620 (Oct 7 high). On the flip side, supports are seen at 1.2448 (Nov 4 low), 1.2343 (Oct 10 high) and 1.2274 (10-day SMA).