GBP/USD ends 2023 in bullish area

GBP/USD Forecast: Pound Sterling faces next key support at 1.2560

GBP/USD declined for the second consecutive on Tuesday before going into a consolidation phase at around 1.2600 early Wednesday. As market participants await the ADP Employment Change data from the US, the pair’s technical outlook points to a bearish bias in the near term.

The US Dollar (USD) continued to outperform its rivals on Tuesday as the market mood remained risk-averse amid a lack of de-escalation in geopolitical tensions in the Middle East. In the meantime, latest data releases from the US revealed that the service sector’s business activity continued to expand at an accelerating pace in November, while the number of job openings declined more than expected from September to October. Read more…

GBP/USD ends 2023 in bullish area

With the year 2023 drawing to a close, GBPUSD could not carry the impressive rally of the last three weeks above the bullish crossover within the 50- and the 100-week simple moving averages (SMAs) and the 23.6% Fibonacci retracement level of the upward wave from 1.0325 to 1.3140 at 1.2480. Also, the pair found strong resistance near the 200-week exponential moving average (EMA), sending prices lower this week so far.

Currently, the market price is holding above the opening price from last January. However, the technical oscillators are suggesting a weakening momentum. Specifically, the RSI is pointing south in the bullish region, while the MACD is flattening above its trigger line and near the zero level. Read more…

GBP/USD outlook: Cable – limited correction likely to precede fresh rise, US labor data in focus

Cable is holding within a tight range on Wednesday morning, as two-day pullback found a footstep on broken Fibo support at 1.2585, though stronger dollar and weaker than expected UK data continue to sour the sentiment.

Traders await release of US labor data (ADP report is due later today and NFP on Friday) for fresh direction signals. Technical studies on daily chart are bullishly aligned (positive momentum / MA’s mainly in bullish setup / oversold stochastic) which points to scenario of limited correction preceding fresh push higher. Read more…