GBP/USD trades flat ahead of UK trade data

GBP/USD is trading flat in Asia following a three-day losing streak as investors await the UK trade data, which could show the trade deficit narrowed somewhat in October. 

Trades below 1.26

The spot was last seen trading near 1.2590 levels. Thursday’s sharp sell-off in the EUR/USD pair following the ECB decision also pushed the GBP/USD lower to 1.2549 levels from the daily high of 1.2704. 

The focus today is on the UK trade figures. A narrower-than-expected number could support Sterling, although hardening of the treasury yields ahead of the next week’s FOMC rate decision may cap gains. 

GBP/USD Technical Levels

A move above 1.26 (psychological level + hourly 200-MA) would expose the hourly 100-MA level of 1.2666, above which the previous day’s high of 1.2704 could be put to test. On the other hand, a breakdown of support at 1.2569 (Asian session low) would expose support at 1.2548 (previous day’s low) and 1.25 (zero figure).