Sterling is one of the top performing currencies on Tuesday on the back of some strong economic data in the overnight.
Earlier in the day, the UK’s visible trade deficit fell to £6.784 billion in November, further than calls for a decline to £7.0 billion from a revised £7.016 billion in October.
Exports were up 0.1% month-over-month, while imports declined 0.8%.
In the immediate aftermath of the release, sterling, already under pressure from gains in the USD, rallied 14 pips to 1.6112 before reaching an intraday high at 1.6194 several hours later.
Also supporting the gains was an earlier report from the British Retail Consortium, which said that retail sales rose 6.0% year-over-year in December after a 4.1% gain the month prior.
GBP/USD last traded 64 pips higher at 1.6179 after trading in a range of 1.6063 to 1.6181 today. Support lies at 1.6054 and 1.6050 followed by 1.5955 and 1.5900. There is resistance at 1.6194.
Meanwhile, EUR/GBP last traded 221 pips lower at 0.89840, after trading in a range between 0.89623 and 0.90282. Short term support is at 0.8923 with resistance at 0.9055.
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