GBP/USD best performer, anchored in Asia, teasing at 1.2630 ahead of critical resistance 1.2650

Currently, GBP/USD is trading at 1.2629, down -0.03% on the day, having posted a daily high at 1.2639 and low at 1.2626.

Market wrap: Sterling was the out-performer - Westpac

GBP/USD has been the best performer and has been anchored on the 1.26 handle for the best part of the US and Asia so far, teasing the bears stacked up around the 1.2650 level and last defence for a break higher to the 1.27 handle ahead of today's GDP data from the UK that could either make or break the pound for the week ahead.

The UK reports the first estimate of Q4 GDP 

"UK growth has been remarkably stable. Quarterly growth has averaged 0.6% over the last four and 12 quarters.  Quarterly growth has averaged 0.5% over the past five years.  Economists expect the UK economy grew 0.5%-0.6% in Q4 16," explained analysts at Brown Brothers Harriman.

We also have the first GDP Q4 for the US on Friday and Trump is set to speak with UK PM May on Friday, so that too could offer some stability to the pound as well in respect to Brexit. 

GBP/USD levels

"We suspect that prices will need to go sub 1.2250 in order to alleviate immediate upside pressure," explained analysts at Commerzbank, adding "Currently we remain unable to rule out further strength to the 1.2776 December high."

With spot trading at 1.2630, we can see next resistance ahead at 1.2636 (Daily Open), 1.2639 (Daily High), 1.2640 (Yesterday's High), 1.2686 (Weekly Classic R2) and 1.2690 (Daily Classic R3). Support below can be found at 1.2626 (Daily Low), 1.2618 (Daily Classic R2), 1.2587 (Hourly 20 EMA), 1.2562 (Daily Classic R1) and 1.2524 (Weekly Classic R1).