GBP/USD keeps highs near 1.2750

The Sterling is marginally up ahead of the opening bell in Europe on Tuesday, with GBP/USD navigating a narrow range around the mid-1.2700s.

GBP/USD sidelined around recent highs

The pair is managing well to keep the trade in the upper end of the recent range near 1.2750 - levels last visited in early October - amidst a mild bias favouring the greenback following Monday’s deep pullback.

Spot is advancing for the sixth session in a row so far today, although the broader upside momentum of the British Pound has been sustained especially after the High Court ruled against the government in November and later reinforced by president-elect D.Trump’s ‘wishes’ to strengthen the trade links between the UK and the US.

Nothing in the UK docket today should leave all the attention to the US data releases, with October’s Factory Orders and Trade Balance figures taking centre stage later in the day.

On the positioning side, GBP speculative net shorts have climbed to 2-week highs during the week ended on November 29, according to the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is gaining 0.16% at 1.2753 facing the next hurdle at 1.2791 (100-day sma) followed by 1.2862 (high Oct.4) and then 1.3125 (high Sep.22). On the flip side, a break below 1.2623 (low Dec.5) would open the door to 1.2524 (20-day sma) and then 1.2495 (55-day sma).