Technical analysis: GBP/USD holds above 1.25 but weak bullish bias
GBP/USD has managed to hold above the 1.2500 mark this week following last week’s post-Fed tumble that pulled the pair to the lowest since May, hitting 1.2474. The slide reinforced the medium-term downtrend line as a strong resistance wall, but now the bulls face additional barriers.
Any recovery attempt would first need to overcome the 61.8% Fibonacci retracement of the November-December upleg at 1.2610 and then battle the 20-day simple moving average (SMA) at 1.2663 before cracking the descending trendline. Read more…
GBP/USD Forecast: Pound Sterling stays directionless below 1.2550
GBP/USD moves sideways in a tight range below 1.2550 in the European morning on Tuesday after posting small losses on Monday. The pair is likely to have a hard time finding direction in the near term, with trading conditions remaining thin heading into the Christmas holiday.
The US Dollar held its ground on Monday but struggled to gather strength following mixed macroeconomic data releases from the US. The US Census Bureau announced that Durable Goods Orders declined by 1.1% on a monthly basis in November, coming in worse than analysts’ estimate for a decrease of 0.4%. Read more…
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