GBP/USD continues to push higher toward 1.2300

• GBP/USD gained traction and advanced toward 1.2300 on Monday.
• The data from the UK showed that the UK economy grew by 0.5% in October. 
• The improving market mood seems to be weighing on the US Dollar.

GBP/USD gained traction and climbed to a fresh daily high near 1.2300 in the early American session on Monday. As of writing, the pair was up 0.23% on the day at 1.2282.

Earlier in the day, the data published by the UK’s Office for National Statistics showed that the Gross Domestic Product expanded by 0.5% on a monthly basis in October following the 0.6% contraction recorded in September. This data, however, failed to trigger an immediate market reaction.

Nevertheless, the improving market mood seems to be weighing on the US Dollar and helping GBP/USD continue to edge higher.

At the time of press, US stock index futures were up between 0.3% and 0.35%, pointing to a positive opening in Wall Street’s main indexes. Meanwhile, the US Dollar Index was posting modest daily losses at 104.80.

On Tuesday, the November jobs report from the UK will be looked upon for fresh impetus. More importantly, the US Bureau of Labor Statistics will release the Consumer Price Index figures later in the day. Investors will scrutinize these data releases and their potential impact on the Bank of England’s and the Federal Reserve’s upcoming policy announcements later in the week. 

Technical levels to watch for