GBP/USD gains traction near 1.2722 on a risk-on mood

GBP/USD Price Analysis: Holds above the 1.2720 mark amid the risk-on mood

The GBP/USD pair kicks off the new week on a positive note during the early European session on Monday. The rebound of the major pair is bolstered by the risk-on environment. However, the rising tension in the Red Sea might boost safe-haven asset demand and cap the upside of GBP/USD. At press time, the pair is trading at 1.2722, up 0.16% for the day. 

Technically, GBP/USD resumes its uptrend as the pair holds above the 100-hour Exponential Moving Averages (EMA) on the four-hour chart. Furthermore, the 14-day Relative Strength Index (RSI) stands in bullish territory above the 50 midlines, indicating that further upside looks favorable. Read more…

GBP/USD edges higher to near 1.2710 on prevailing risk-on mood

GBP/USD retraces its recent losses registered on Friday, trading higher near 1.2720 during the Asian session on Monday. The Pound Sterling (GBP) makes advances against the US Dollar (USD), a movement potentially linked to the prevailing risk-on market sentiment. However, challenges arose for the GBP/USD pair following the release of lackluster December Retail Sales data from the United Kingdom (UK) on Friday.

Office for National Statistics (ONS) released the monthly Retail Sales data for December, revealing a notable decline of 3.2%, compared to the previous figure of 1.4%. This exceeded the anticipated decrease of 0.5%. On an annual basis, the data indicated a decrease of 2.4%, contrasting with the expected increase of 1.1%. Read more…