GBP/USD off session low, still weaker below 1.2500 mark

The GBP/USD pair witnessed a tepid bounce of around 25-pips from session low but maintained its bearish bias below 1.2500 psychological mark following the US economic releases.

According to the data released just a while ago, the US consumer inflation, as measured by CPI, 0.2% in November, while core CPI (excluding the volatile food and energy prices) also rose 0.2%. The monthly readings were in-line with consensus estimates.

Meanwhile, the Philly Fed Manufacturing Index surprisingly jumped to the highest level in two years, reading at 21.5 in December as compared to last month's 7.6. Meanwhile, the Empire State Manufacturing Index rose to a reading of 9, up from November's 1.5. Both the regional manufacturing gauges surpassed expectations and suggested optimism in wake of Donald Trump's surprise victory in the US presidential election. Adding to this, weekly jobless claims fell by 4,000 and came-in at 254K, clearly pointing to the inherent strength in the US labor market. 

Today's US economic data did little to hinder the US Dollar's strong bullish momentum, albeit the overall US Dollar Index has cooled off from 14-year highs touched earlier during early NA session in the aftermath of hawkish Fed statement. on Wednesday. 

Technical levels to watch

Any recovery attempts might now confront immediate resistance at previous support near 1.2490-1.2500 region. Momentum above this immediate hurdle could get extended but is likely to be capped near 1.2535-40 resistance area. On the downside, weakness below session low support near mid-1.2400s seems to drag the pair immediately towards 50-day SMA support near 1.2415-10 region, which if broken would turn the pair vulnerable to resume with its prior depreciating move.