GBP/USD Price Analysis – Dec 02, 2024
Daily Price Outlook
During the European trading session, the GBP/USD currency pair fell, slipping below the 1.2700 mark, as the US Dollar gained strength following President-elect Donald Trump's threats against the BRICS trading bloc.
Trump announced that he would impose 100% tariffs on BRICS countries if they tried to create a new currency to replace the US Dollar. This threat added strength to the US Dollar, further supporting the Greenback’s position.
US Dollar Strengthened by Trump's Stance Against BRICS
Donald Trump's comments on social media sparked concerns about trade tensions. He criticized the BRICS nations' plan to create a new currency that could challenge the US Dollar's dominance in global trade.
Trump said that these countries must promise not to create a new currency or back any other currency to replace the US Dollar, or they would face 100% tariffs.
His strong statement helped strengthen the US Dollar, which put pressure on the GBP/USD pair. The threat of tariffs made investors more cautious, supporting the Greenback while causing the Pound to weaken.
Pound Sterling Finds Support in UK Housing Data
Despite the initial decline, the cable currency regained some ground after the release of Nationwide Housing Price data, which showed a year-over-year rise of 3.7% in November, beating expectations of 2.4%.
On a seasonally adjusted basis, housing prices increased by 1.2% month-over-month, significantly higher than the forecasted 0.2% growth.
Therefore, the data offered temporary relief to the Pound as it highlighted underlying resilience in the UK housing market.
Interest Rate Cuts Expected from BoE and Fed: Impact on GBP/USD
Investors are closely watching interest rate decisions from both the Bank of England (BoE) and the US Federal Reserve (Fed), as these are major drivers of currency valuations.
Both central banks are expected to cut interest rates at their December meetings, with inflation easing in both the UK and the US.
The swaps market suggests a 60% chance of a 0.25% rate cut by the BoE, while the CME FedWatch tool shows a 67% probability of a similar cut by the Fed.
Therefore, the lower interest rates can make a currency less attractive to investors since they reduce returns on investments, which can lead to lower foreign capital inflows.
As a result, the Pound and US Dollar may face downward pressure, limiting volatility in the GBP/USD pair.
GBP/USD – Technical Analysis
The GBP/USD pair is trading at $1.2692, showing cautious consolidation near the pivot point at $1.26758. The pair reflects indecision, with price movement closely aligned to key technical levels.
Immediate resistance stands at $1.27486, followed by $1.28086 and $1.28575. A breakout above $1.27486 could attract further bullish momentum, supported by the 50-day EMA at $1.26473, which reinforces underlying support.
On the downside, immediate support is identified at $1.26175, with further critical levels at $1.25669 and $1.25072. The Relative Strength Index (RSI) is neutral at 50, indicating a balance between bullish and bearish forces. A sustained move below $1.26758 could drive prices toward $1.26175 and signal a broader bearish sentiment.
While the broader trend remains uncertain, the pair's proximity to its pivot point suggests a critical juncture. Bulls must reclaim $1.27486 for a potential rally, while failure to hold above $1.26758 may lead to downside risks.
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GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Pivot point at $1.26157: A decisive break higher could lead to $1.26476.
- Support at $1.25363: A breach here may drive a move toward $1.24874.
- RSI at 52: Neutral territory, signaling consolidation with potential for breakout.
GBP/USD is trading at $1.25792, up 0.09%, reflecting cautious optimism amid mixed technical signals. On the 4-hour chart, the pair remains above its 50 EMA at $1.25722, suggesting moderate support for current levels.
The pivot point at $1.26157 is a critical barrier; a sustained move above this level could target immediate resistance at $1.26476, followed by $1.26747.
On the downside, immediate support lies at $1.25363, with further levels at $1.25112 and $1.24874. A break below $1.25363 would likely shift momentum toward bearish territory, exposing the pair to declines toward $1.24874 or lower.
Technical indicators paint a neutral-to-slightly-bullish picture. The RSI stands at 52, indicating consolidation near the midpoint of the range. While not overbought, the pair lacks significant upward momentum, keeping price action restrained.
The outlook hinges on the pivot point at $1.26157. A breakout above this key level would affirm bullish sentiment and open the door for a move toward $1.26476 and beyond.
Conversely, failure to hold above the 50 EMA at $1.25722 or a decisive break below $1.25363 could prompt sellers to regain control, leading to short-term bearish pressure.
GBP/USD - Trade Ideas
Entry Price – Sell Below 1.25792
Take Profit – 1.25337
Stop Loss – 1.26107
Risk to Reward – 1: 1.4
Profit & Loss Per Standard Lot = +$455/ -$315
Profit & Loss Per Mini Lot = +$315/ -$31
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Pivot Point at $1.05203: A key barrier; breakout needed to target $1.05625.
- Support at $1.04378: A breach may accelerate declines to $1.03854.
- RSI at 49: Neutral, with potential for oversold bounce or further bearish action.
EUR/USD is trading at $1.04850, down 0.03%, as the pair struggles to hold above key technical levels. On the 4-hour chart, the pivot point at $1.05203 serves as a significant hurdle, with immediate resistance at $1.05625 and further resistance at $1.06071.
A break above these levels could indicate a reversal of the recent bearish sentiment and open the door for further gains.
On the downside, immediate support lies at $1.04378, with additional levels at $1.03854 and $1.03489. The pair is currently hovering near its 50 EMA, which sits at $1.04776. This level is providing short-term support, but a sustained break below it could reinforce bearish momentum.
The RSI is at 49, reflecting a neutral bias but leaning slightly toward oversold territory. This suggests that while the pair is under pressure, it may find temporary relief if buyers step in near current support levels.
The outlook for EUR/USD depends heavily on its ability to regain traction above the $1.05203 pivot point. A failure to break this level could see the pair retest support at $1.04378, potentially triggering further declines. Conversely, a move above $1.05625 would indicate bullish momentum, shifting the focus toward higher resistance levels.
EUR/USD - Trade Ideas
Entry Price – Sell Below 1.04893
Take Profit – 1.04366
Stop Loss – 1.05209
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$527/ -$316
Profit & Loss Per Mini Lot = +$52/ -$31
GBP/USD Price Analysis – Nov 27, 2024
Daily Price Outlook
During the European trading session, the GBP/USD currency pair edged higher and reached an intra-day high of 1.2620. This rise comes as the US Dollar loses some ground because US President-elect Donald Trump nominated Scott Bessent for Treasury Secretary.
The market hopes Bessent will help carry out Trump’s trade policies slowly and carefully to avoid a full trade war. On the other hand, the British Pound is being cautious due to worries about how Trump’s tariffs might impact the UK’s exports.
US Dollar Faces Pressure Amid Trade Policy Uncertainty and Fed Rate Cut Expectations
On the US front, the broad-based US dollar has been under pressure this week after President-elect Donald Trump nominated Scott Bessent, an experienced hedge fund manager, for Treasury Secretary.
Investors believe Bessent will help implement Trump’s trade policies carefully to avoid a major trade war. This uncertainty has caused the US Dollar Index (DXY), which tracks the dollar against six major currencies, to weaken.
On the other side, investors are closely watching the possibility of a rate cut in December. According to the CME FedWatch tool, the likelihood of the Fed reducing interest rates by 0.25% has increased to 65% from 56% last week.
This is mainly due to the release of the Federal Open Market Committee (FOMC) minutes on Tuesday, which showed that some officials are open to pausing rate cuts if inflation stays high, while others believe further cuts might be needed if economic conditions worsen.
Moving on, investors will focus on the US Personal Consumption Expenditure (PCE) data for October, set to be released at 15:00 GMT. Economists predict that the core PCE inflation – which excludes food and energy prices – will rise to 2.8% year-over-year, up from 2.7% in September, with a steady 0.3% monthly increase.
Therefore, the uncertainty around US trade policies and the potential rate cut by the Fed could weaken the US dollar, which may support a rise in the GBP/USD pair. If inflation data aligns with expectations, the Pound could strengthen further against the Dollar.
Pound Sterling Faces Uncertainty Amid US Tariff Concerns and BoE Rate Expectations
On the other hand, the Pound Sterling is showing uncertain price movement against other major currencies as concerns grow about the impact of US tariffs on the UK’s export sector. These worries are making traders wary, affecting the Pound’s performance.
In an interview with the Financial Times, Bank of England (BoE) Deputy Governor Clare Lombardelli spoke about the potential impact of US tariffs on the UK economy. She acknowledged that trade barriers could harm economic growth in the short, medium, and long term but refrained from making any specific predictions about how severe the effect might be.
This week, there are no significant UK economic updates. As a result, the British Pound’s movement will likely depend on market expectations regarding the BoE’s interest rate decision in December. Currently, traders expect the BoE to keep interest rates steady at 4.75% next month, waiting for more data before deciding on future actions.
Therefore, the uncertainty surrounding US tariffs and the Bank of England's cautious stance on interest rates may weigh on the British Pound. This could limit any significant upward movement for GBP/USD, as traders await further economic data and BoE's rate decision in December.
GBP/USD – Technical Analysis
GBP/USD is trading at $1.25792, up 0.09%, reflecting cautious optimism amid mixed technical signals. On the 4-hour chart, the pair remains above its 50 EMA at $1.25722, suggesting moderate support for current levels.
The pivot point at $1.26157 is a critical barrier; a sustained move above this level could target immediate resistance at $1.26476, followed by $1.26747.
On the downside, immediate support lies at $1.25363, with further levels at $1.25112 and $1.24874. A break below $1.25363 would likely shift momentum toward bearish territory, exposing the pair to declines toward $1.24874 or lower.
Technical indicators paint a neutral-to-slightly-bullish picture. The RSI stands at 52, indicating consolidation near the midpoint of the range. While not overbought, the pair lacks significant upward momentum, keeping price action restrained.
The outlook hinges on the pivot point at $1.26157. A breakout above this key level would affirm bullish sentiment and open the door for a move toward $1.26476 and beyond.
Conversely, failure to hold above the 50 EMA at $1.25722 or a decisive break below $1.25363 could prompt sellers to regain control, leading to short-term bearish pressure.
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GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: $1.26738, $1.27143.
- Support Levels: $1.25673, $1.25394, $1.25019.
- Momentum Indicators: RSI at 59 signals a bullish outlook with further upside potential.
GBP/USD is trading at $1.25917, up 0.52%, reflecting a positive tone amid risk-on sentiment. The pair is holding above the pivot point at $1.26373, signaling potential for continued bullish momentum. Immediate resistance is seen at $1.26738, with further targets at $1.27143. However, failure to break higher could lead to consolidation or a pullback toward the pivot.
On the downside, immediate support is located at $1.25673, with key levels at $1.25394 and $1.25019 offering additional safety nets. The 50 EMA at $1.25830 reinforces the bullish structure, providing dynamic support and signaling strong upward momentum.
The RSI at 59 indicates bullish sentiment, suggesting room for further upside. Traders are eyeing an entry below $1.26040 for potential short positions, targeting $1.25552, with a stop loss at $1.26272 to manage risk.
GBP/USD - Trade Ideas
Entry Price – Sell Below 1.26040
Take Profit – 1.25552
Stop Loss – 1.26272
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$488/ -$232
Profit & Loss Per Mini Lot = +$48/ -$23
GBP/USD Price Analysis – Nov 25, 2024
Daily Price Outlook
During the European trading session, the GBP/USD currency pair maintained its upward momentum, staying well supported around 1.2567 and reaching an intra-day high of 1.2607. This rise was driven by several factors. The Pound Sterling made a strong recovery after a sharp sell-off on Friday, triggered by disappointing UK economic data.
However, market sentiment on Monday was more positive, helping the Pound regain ground. Meanwhile, the US Dollar started the week weaker, with the US Dollar Index (DXY) falling by 0.5% to near 107.00, offering relief to the GBP/USD pair.
Furthermore, technical factors played a role in the Pound's recovery, as it made a notable attempt to break through the key resistance level of 1.2600, signaling strength and resilience. Traders will be watching closely to see if this upward momentum can be sustained in the coming days.
Weaker US Dollar and Positive US Economic Data Fuel GBP/USD Recovery
On the data front, the broad-based US Dollar edged lower at the start of the week, with the US Dollar Index (DXY) trading 0.5% down near 107.00.
This decline helped the Pound Sterling (GBP) gain ground, as it attempted to extend its recovery above the key resistance level of 1.2600 against the US Dollar (USD).
The weaker USD allowed the GBP/USD currency pair to make a strong start to the week, supported by some positive sentiment in the market.
Meanwhile, US 10-year Treasury yields dropped to around 4.33% after investors reacted to President-elect Donald Trump’s choice of Scott Bessent as Treasury Secretary. Some analysts were pleased with the appointment, seeing it as a reassuring sign for Wall Street.
They noted that Bessent’s approach would focus on implementing tariffs, cutting government spending, and maintaining the US Dollar’s role as the world’s reserve currency.
In addition, upbeat flash S&P Global PMI data for November showed an improving US economy, with the Composite PMI rising to 55.3, the highest in 31 months. This suggested that the manufacturing sector’s decline was slowing down, and the services sector was growing faster than expected.
As a result, traders are split on what the Federal Reserve will do at its December meeting, with 56% expecting a 25 basis point rate cut and 44% predicting that rates will stay the same.
Therefore, the weaker US Dollar and positive market sentiment helped the GBP/USD pair extend its recovery above 1.2600. The drop in US Treasury yields and favorable US economic data further supported the Pound's strength, boosting its upward momentum against the Dollar.
BoE's Cautious Stance Supports Pound Recovery Amid Weak UK Economic Data
On the BoE front, the British Pound faced a tough time on Friday due to disappointing UK economic data. Retail Sales in October fell by 0.7%, as shoppers held back spending ahead of the UK government’s new budget.
This decline in consumer activity, along with a weaker-than-expected flash S&P Global/CIPS Composite PMI for November, put pressure on the Pound. Meanwhile, the PMI dropped below the 50.0 threshold, signaling a slowdown in both the manufacturing and services sectors.
However, the Pound is showing signs of recovery, supported by growing market expectations that the Bank of England (BoE) will take a cautious approach to easing monetary policy.
Traders believe the BoE may keep interest rates unchanged at 4.75% during the upcoming December meeting. Furthermore, they are pricing in a 75 basis point rate cut, bringing rates down to 4% by 2025. This outlook has helped stabilize the Pound and may encourage further gains.
Looking ahead, investors will closely monitor speeches from BoE officials, including Deputy Governor Clare Lombardelli and external policy member Swati Dhingra, for any new guidance on the central bank’s interest rate decisions.
GBP/USD – Technical Analysis
GBP/USD is trading at $1.25917, up 0.52%, reflecting a positive tone amid risk-on sentiment. The pair is holding above the pivot point at $1.26373, signaling potential for continued bullish momentum. Immediate resistance is seen at $1.26738, with further targets at $1.27143. However, failure to break higher could lead to consolidation or a pullback toward the pivot.
On the downside, immediate support is located at $1.25673, with key levels at $1.25394 and $1.25019 offering additional safety nets. The 50 EMA at $1.25830 reinforces the bullish structure, providing dynamic support and signaling strong upward momentum.
The RSI at 59 indicates bullish sentiment, suggesting room for further upside. Traders are eyeing an entry below $1.26040 for potential short positions, targeting $1.25552, with a stop loss at $1.26272 to manage risk.
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GBP/USD Price Analysis – Nov 20, 2024
Daily Price Outlook
During the European trading session, the GBP/USD currency pair struggled to maintain its bullish momentum and dropped to around the 1.2663 level, hitting an intraday low of 1.2649. This decline occurred despite stronger-than-expected inflation data from the UK.
However, the GBP/USD pair surrendered its gains as the US Dollar regained strength. The US Dollar Index (DXY) surged to approximately 106.50, driven by expectations that the Federal Reserve will implement fewer interest rate cuts in 2025.
BoE's Inflation Concerns Spark Shift in Rate Cut Expectations for December
On the data front, the Consumer Price Index (CPI) revealed that annual inflation jumped to 2.3%, higher than the 2.2% forecast and the previous month's 1.7%. Compared to September, inflation rose by 0.6%, exceeding the expected 0.5% increase.
Core CPI, which excludes food, energy, oil, and tobacco, grew by 3.3%, higher than the previous 3.2% and above the 3.1% expected. Services inflation, which the Bank of England (BoE) closely monitors, also rose to 5% from 4.9%.
As a result, traders have started to rethink expectations for future interest rate cuts by the BoE. Just a day earlier, markets had priced in an 80% chance that the BoE would cut rates by 25 basis points in December.
Several BoE policymakers, including Governor Andrew Bailey, warned that inflation pressures are still strong. Bailey said that services inflation is too high to reach the BoE's target, and Catherine Mann, a BoE member known for her hawkish stance, pointed out that the BoE may struggle to bring inflation down to 2% anytime soon. These comments suggest the BoE might delay rate cuts if inflation remains stubborn.
Impact of Stronger US Dollar and Diminished Fed Rate Cut Expectations on GBP/USD
On the US front, the GBP/USD pair lost its gains as the US Dollar strengthened sharply, with the US Dollar Index (DXY) rising to around 106.50. This increase came from expectations that the Federal Reserve (Fed) will take a slower approach to interest rate cuts in 2025.
With President-elect Donald Trump about to take office, markets believe his policies, such as higher import tariffs and lower taxes, will boost the US economy, raising inflation and encouraging domestic demand and employment. This is causing investors to adjust their expectations for future Fed rate cuts.
As a result, the chances of a 25 basis point rate cut by the Fed in December have dropped from over 82% last week to 59%, according to the CME FedWatch tool. This shift in expectations followed remarks from Fed Chair Jerome Powell, who said the economy isn’t showing signs that the central bank needs to rush into rate cuts.
Looking ahead, investors will focus on the flash S&P Global Purchasing Managers' Index (PMI) data for November, which is due on Friday. The data is expected to show growth in the US private sector, while activity in the UK is expected to remain steady.
Therefore, the strengthening US Dollar and reduced expectations for Fed rate cuts in December have put downward pressure on the GBP/USD pair, leading to a loss of gains and a pullback from higher levels.
GBP/USD – Technical Analysis
GBP/USD is trading at $1.27004, up 0.18%, showing modest bullish momentum as it hovers near the pivot point at $1.27205. Immediate resistance lies at $1.27565, followed by $1.27926, marking key levels for potential upward continuation.
The 50-day EMA at $1.26601 acts as a critical support zone, closely aligned with the immediate support level at $1.26714. Further downside support levels to watch are $1.26272 and $1.25630.
The Relative Strength Index (RSI) stands at 61, suggesting that bullish momentum is gaining traction but remains below overbought conditions. The pair is trading above the 50-day EMA, reinforcing the short-term bullish bias. However, failure to sustain above $1.27205 could push prices back toward support zones, risking a shift in sentiment.
Traders are advised to consider buying above $1.26814, targeting $1.27281 with a stop loss at $1.26592. A sustained break above $1.27565 could confirm further gains, while a move below $1.26714 would test the pair’s resilience.
GBP/USD maintains a bullish bias above $1.27205, targeting $1.27565. A break above resistance could signal further gains, while failure to hold above $1.26714 may shift the trend to bearish.
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GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: Immediate resistance at $1.27565, with higher barriers at $1.27926 and $1.28300 as potential targets.
- Support Levels: Immediate support at $1.26714, followed by $1.26272 and $1.25630 for downside risk.
- Technical Indicators: RSI at 61 supports bullish momentum; 50-day EMA at $1.26601 offers key support for trend validation.
GBP/USD is trading at $1.27004, up 0.18%, showing modest bullish momentum as it hovers near the pivot point at $1.27205. Immediate resistance lies at $1.27565, followed by $1.27926, marking key levels for potential upward continuation.
The 50-day EMA at $1.26601 acts as a critical support zone, closely aligned with the immediate support level at $1.26714. Further downside support levels to watch are $1.26272 and $1.25630.
The Relative Strength Index (RSI) stands at 61, suggesting that bullish momentum is gaining traction but remains below overbought conditions. The pair is trading above the 50-day EMA, reinforcing the short-term bullish bias. However, failure to sustain above $1.27205 could push prices back toward support zones, risking a shift in sentiment.
Traders are advised to consider buying above $1.26814, targeting $1.27281 with a stop loss at $1.26592. A sustained break above $1.27565 could confirm further gains, while a move below $1.26714 would test the pair’s resilience.
GBP/USD maintains a bullish bias above $1.27205, targeting $1.27565. A break above resistance could signal further gains, while failure to hold above $1.26714 may shift the trend to bearish.
GBP/USD - Trade Ideas
Entry Price – Buy Above 1.26814
Take Profit – 1.27281
Stop Loss – 1.26592
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$467/ -$222
Profit & Loss Per Mini Lot = +$46/ -$22
GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Pivot Point at $1.26900: A breakout above this level is key for further upside momentum.
- RSI at 30: Oversold conditions suggest potential for a technical rebound.
- 50 EMA at $1.30541: Reflects bearish long-term sentiment as prices trade well below.
The GBP/USD pair is trading at $1.26203, up a modest 0.03% on the day, as it consolidates within a tight range near critical support levels. The pivot point at $1.26900 serves as a key hurdle for the pair, and a breakout above this level could open the door to immediate resistance at $1.27452.
If bullish momentum persists, the next upside targets are $1.27924. However, the downside remains vulnerable, with immediate support at $1.25957, followed by stronger support at $1.25073 and $1.24513.
The 50-day Exponential Moving Average (EMA) at $1.30541 reflects a bearish trend in the broader outlook, as prices remain well below this longer-term indicator. The Relative Strength Index (RSI) is currently at 30, signaling that the pair is oversold, which could set the stage for a potential technical rebound.
In the 4-hour chart, GBP/USD shows signs of downward pressure as it trades below the pivot point. A buy-limit entry at $1.26095 could offer traders a strategic opportunity, targeting a take-profit level of $1.26911. However, caution is warranted, with a stop-loss placed at $1.25462 to limit downside risk.
GBP/USD - Trade Ideas
Entry Price – Buy Limit 1.26095
Take Profit – 1.26911
Stop Loss – 1.25462
Risk to Reward – 1: 1.29
Profit & Loss Per Standard Lot = +$816/ -$633
Profit & Loss Per Mini Lot = +$81/ -$63
GBP/USD Price Analysis – Nov 18, 2024
Daily Price Outlook
The Pound Sterling recovers marginally following dismal UK GDP-driven selling on Friday.
The Pound Sterling (GBP) edged higher against its major peers on Monday, attempting to regain ground after Friday's sell-off. The British pound plummeted dramatically when the Office for National Statistics (ONS) reported that the GDP unexpectedly shrunk by 0.1% in September. The figures also showed that the economy increased slowly in the third quarter.
The unexpected dip in UK GDP may lead to further interest rate reduction by the Bank of England (BoE).
Markets will be focusing almost entirely on the services inflation figure, which the analysts expect to rise somewhat from 4.9% to 5.0%. However, when we remove sectors that are less relevant to the Bank of England, 'core services' inflation falls significantly to 4.3%.
That would be good news for the BoE, but not likely enough to warrant another cut in December. In addition, markets may focus more on the 'non-core' services CPI data, maintaining to cautious BoE pricing and putting a cap on the recent modest bounce in EUR/GBP.
The UK's economic future is projected to become more uncertain as the government struggles to decide between increasing trade links with the European Union (EU) and the United States.
UK Faces Economic Dilemma Between EU and US Models as GBP Struggles Amid Strong USD
The United Kingdom is caught between these two types of economic models, and I believe the country would benefit from adopting more of the American model of economic independence. And if that were the case, Moore believes it would increase the Trump administration's desire to pursue the free trade pact with the UK. His remarks came as BoE Governor Andrew Bailey encouraged the administration to rebuild relations with the European Union.
During Monday's London session, the pound sterling remained under pressure near 1.2600 against the US dollar. The GBP/USD pair struggles to find traction as the US Dollar maintains gains near a more-than-a-year high, while the US Dollar Index (DXY) hovering around 107.00.
The greenback trades firmly as investors expect the Federal Reserve (Fed) to take a more cautious rate-cutting approach given the recent minor rise in inflation and the growth forecast based on strong anticipation that President-elect Donald Trump would be able to carry out his economic program efficiently.
GBP/USD – Technical Analysis
The GBP/USD pair is trading at $1.26203, up a modest 0.03% on the day, as it consolidates within a tight range near critical support levels. The pivot point at $1.26900 serves as a key hurdle for the pair, and a breakout above this level could open the door to immediate resistance at $1.27452.
If bullish momentum persists, the next upside targets are $1.27924. However, the downside remains vulnerable, with immediate support at $1.25957, followed by stronger support at $1.25073 and $1.24513.
The 50-day Exponential Moving Average (EMA) at $1.30541 reflects a bearish trend in the broader outlook, as prices remain well below this longer-term indicator. The Relative Strength Index (RSI) is currently at 30, signaling that the pair is oversold, which could set the stage for a potential technical rebound.
In the 4-hour chart, GBP/USD shows signs of downward pressure as it trades below the pivot point. A buy-limit entry at $1.26095 could offer traders a strategic opportunity, targeting a take-profit level of $1.26911. However, caution is warranted, with a stop-loss placed at $1.25462 to limit downside risk.
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