GBP/USD Price Analysis: Holds steady around 1.2300, just below ascending channel resistance.

GBP/USD retreats a bit from a multi-month high, though lacks follow-through.

The technical setup still favours bulls and supports prospects for further gains.

A sustained break below the 200 DMA is needed to negate the positive outlook.

The GBP/USD pair reverses a mid-European session dip to the 1.2235-1.2230 area and remains well within the striking distance of its highest level since June 17 touched earlier this Monday.

The attempted intraday US Dollar recovery from over a five-month low lacks bullish conviction amid bets that the Fed will slow the pace of its policy tightening as soon as in December. This, in turn, is seen as a key factor lending support to the GBP/USD pair. That said, a bleak outlook for the UK economy acts as a headwind for the British Pound and keeps a lid on spot prices, at least for now.

From a technical perspective, the top end of over a two-month-old upward-sloping channel, currently around mid-1.2300s, continues to cap the upside for the GBP/USD pair. That said, last week’s sustained move and acceptance above a technically significant 200-day Simple Moving Average (SMA) for the first time in 2022 supports prospects for an eventual breakout through the ascending channel.

That said, oscillators on the daily chart have moved on the verge of breaking into the overbought zone and warrant some caution. This makes it prudent to wait for some near-term consolidation or a modest pullback before positioning for the next leg up. Nevertheless, the bias still seems tilted firmly in favour of bullish traders and supports prospects for a further near-term appreciating move.

In the meantime, the daily low, around the 1.2235-1.2230 region, now seems to protect the immediate downside ahead of the 1.2200 round-figure mark. Any subsequent decline could still be seen as a buying opportunity and remain limited near the 1.2150 region (200-DMA). The latter should act as a pivotal point, which if broken decisively will negate the positive outlook for the GBP/USD pair.

EUR/USD drops below 1.0550 after upbeat US data

EUR/USD lost its traction and turned negative on the day below 1.0550 in the American session. The ISM Services PMI data in the US improved to 56.5 in November from 54.4 in October, providing a boost to the US Dollar. 


GBP/USD extends slide below 1.2200 on renewed US Dollar strength

GBP/USD extended its slide and fell below 1.2200 on Monday. The better-than-expected ISM Services PMI data from the US and the risk-averse market environment, as reflected by falling US stocks, weigh on the pair n the American session.


Gold slumps below $1,780 as US yields push higher

Gold price continued to push lower in the second half of the day on Monday and broke below $1,780. Following the upbeat ISM Services PMI report from the US, the benchmark 10-year US Treasury bond yield is up more than 2%, forcing XAU/USD to stay under bearish pressure.

Leave a Comment

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s