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The GBP/USD pair shows neutral dynamics, holding near 1.2270 and local highs from December 5, renewed at the end of last week, based on the ongoing downtrend in the US dollar.

Yesterday, the National Statistical Office of the United Kingdom published October data on the gross domestic product (GDP): the economy strengthened by 0.5% MoM, which exceeded analysts' expectations, which assumed an increase of 0.4%, while the annual value accelerated to 1.5% from 1.3% a month earlier. The manufacturing sector showed a significant improvement, the output of which increased by 0.7% after zero dynamics in September, while industrial production in October remained unchanged after rising by 0.2% last month from forecasts of –0.3%, and decreased by 2.4% YoY, better than market expectations at –4.2%. Nevertheless, investors are in no hurry to buy the pound, as today, pressure on the currency may increase after markets evaluate the morning report on the national labor market: last month, the report reflected an increase in unemployment from 3.5% to 3.6%, which may negatively affect the prospects for the GBP/USD pair.

The US dollar stopped moving around 104.600 in the USD Index in anticipation of today's inflation report. Following the recent statement by US Treasury Secretary Janet Yellen, who predicted a significant decline in 2023, analysts expect consumer prices to decline to 7.3% in November from 7.7% in October, and any other result can be perceived extremely negatively. The underlying value will likely drop to 6.1% from 6.3% a month earlier.

The daily chart shows the trading instrument moving within the local ascending channel near the resistance line.

Technical indicators keep a buy signal: the range of fluctuations of the EMA on the Alligator indicator expands upwards, and the histogram of the AO oscillator forms corrective bars in the buying zone.

Resistance levels: 1.2344, 1.2662. | Support levels: 1.2132, 1.1820.