GBP/USD stuck at 5-DMA in Asia

GBP/USD pair recovered from the session low of 1.2407 but is having a tough time taking out the 5-DMA hurdle of 1.2425.

Focus on Autumn statement

Chancellor Hammond’s first autumn statement is widely expected to revise growth forecast lower and inflation forecast higher.

Furthermore, he is in for a tough task as the government needs to prepare the economy for Brexit (via spending) and support JAMs (Just About Managing families) amid rising fiscal debt.

Later in the day, US durable goods orders release could influence the overall demand for the US dollars.

GBP/USD Technical Levels

A break above 1.2425 (5-DMA) would open doors for a rally to stiff resistance around 1.25. A close above 1.25 could yield a more sustained rally to 1.26 levels. On the lower side, breach of 1.24 (zero figure) would expose 1.2378 (50% of 1.2083-1.2674) – 1.2354 (Nov 9 low).