The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Thursday, increasing the price of GBPUSD to more than 1.2477 ahead of the US Consumer Confidence news. The technical bias has turned bullish because of a higher high in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded near 1.2470. A support can be noted around 1.2380 (an immediate trendline support) ahead of 1.2280 (the 38.2% fib level) and then 1.2180 (the confluence of lower trendline as well as horizontal support area) as demonstrated in the given below hourly chart.

On the upside, a hurdle may be noted around 1.2637 (the trendline resistance area as demonstrated with brown color in the above chart) ahead of 1.2705 (the high of recent upside wave) and then 1.2800 (the psychological number). The technical bias shall remain bullish as long as the 1.2108 support area is intact.

US Gross Domestic Product

U.S. economic growth slowed less than previously reported in the fourth quarter amid robust consumer spending that was partially met with a rise in imports. Gross domestic product increased at a 2.1 percent annualized rate instead of the previously reported 1.9 percent pace, the Commerce Department said on Thursday in its third GDP estimate for the period. There are indications that activity moderated further at the start of 2017.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels can be a good strategy in short to medium term.