Technical analysis: GBP/USD remains above 1.25, but the bias is delicate, bullish
GBP/USD managed to stay above the 1.2500 level this week after last week’s decline following the Fed’s decision, which took the pair to its lowest level since May, reaching 1.2474. The slide reinforced the medium-term downtrend line as a robust wall of resistance, but bulls now face additional barriers.
Any recovery attempt would first need to overcome the 61.8% Fibonacci retracement up from November to December at 1.2610 and then overcome the 20-day uncomplicated moving average (SMA) at 1.2663 before breaking the downtrend line. Read more…
GBP/USD Forecast: Sterling remains directionless below 1.2550
GBP/USD is moving sideways in a tight range below 1.2550 on European Tuesday morning after posting tiny losses on Monday. The pair are likely to struggle to find direction in the near future due to hard trading conditions ahead of Christmas.
The US dollar held steady on Monday, but struggled to strengthen following the release of mixed US macroeconomic data. The U.S. Census Bureau reported that tough goods orders fell 1.1% month-over-month in November, worse than analyst estimates of a 0.4% decline. Read more…
