The pound jumps as US data weakens the dollar

The pound continues in the upper half of the channel and above the £1.24 mark after the US data weakened the dollar. The US added more jobless claims than anticipated, strengthening the idea for the Fed to cut rates sooner. Currently, sterling is trading at around £1.2453 against the dollar with the main resistance for the cable now at the level of £1.2506 (yesterday’s high). A break and close above it may see the pound extend towards the region of £1.2550-£1.26. Whereas towards the downside, the support now for the cable sits at £1.2376. A move below this level may see a fall towards the lower half of the channel, or respectively, the £1.23 area. Looking at the technical indicators on the 4-hourly interval they are a little mixed. The MACD turned negative yesterday, implying that some cooling is taking place, perhaps enticing the bears to force some downside. But the RSI is still positive as it reads 63.