The pound/dollar trades at fresh 2-week highs having extended up to 1.2552 so far today and holding nearby ahead of the release of the U.K. Markit manufacturing PMI for November, expected at 54.5 from the previous 54.3. The pound found support in the release of the U.K. Nationwide house price index, which rose by 0.1% on a monthly basis, taking the annual rate of house price growth to 4.4% from 4.6% in October. Nevertheless, the report stated that "demand conditions have strengthened a little in recent months, reflecting the impact of solid labour market conditions and historically low borrowing costs," boosting the pound.
Later today, the U.S. will release some minor employment figures, weekly unemployment clams and the Challenger Job Cuts, quite relevant ahead of the Nonfarm Payroll Report on Friday. Also, the U.S. will release the ISM and Markit manufacturing PMIs for November.
Technically, a modest bullish bias persists as technical indicators are advancing well above their mid-lines, while the price is developing above its moving averages that remain pretty much horizontal in the 1.2460 region. Should the price accelerate above the mentioned daily high, there is scope for an upward extension up to 1.2610, the immediate resistance, en route to 1.2673, a November high.
Below 1.2530, on the other hand, the risk turns towards the downside, with 1.2475 and 1.2430 as the next intraday supports and probable bearish targets.
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