GBP/USD spikes to fresh session peak

The GBP/USD pair's recovery momentum has gained traction in the past hour, lifting it to a fresh session high level near 1.2460-65 region. 

In absence of any fresh development, the pair's latest leg of up-move could be attributed to short-covering as traders seemed inclined to lock-in some profits after the pair showed strong resilience to decisively break below yesterday's three-week low. The pair on Thursday did slide below 50-day SMA but retraced quickly and has been able to find fresh bids below 1.2400 handle. 

Next on tap would be US economic docket, featuring building permits and housing starts for November, and would be looked upon for fresh impetus during early NA session.

Technical levels to watch

A follow through buying interest is likely to assist the pair to extend its recovery momentum further towards an important support break-point, now turned resistance, near 1.2500 psychological mark. The momentum could further get extended but might now be capped near 1.2530-35 horizontal resistance. 

On the downside, 1.2425 level now becomes immediate support to defend, which if broken seems to drag the pair back below 50-day SMA support near 1.2410 region and 1.2400 handle, towards testing multi-week lows support near 1.2380-75 zone.