The US dollar seems ready to end the year on a strong note against its rivals. This has kept the GBPUSD pair under significant bearish pressure. Much of the bullish sentiment surrounding the greenback appears to have emanated from Trump’s victory towards the end of this year. Meanwhile, due to inflationary concerns, the Fed has assumed a cautious stance, anticipating that there will be fewer rate cuts in the new year.
Key Price Levels:
Resistance Levels: 1.2600, 1.2700, 1.2800
Support Levels: 1.2500, 1.2400, 1.2300
GBPUSD Eyes The 1.2500 Support
As stated earlier, the GBPUSD pair remains under pressure, and this is evident even though price action has recorded continued downward retracement. The last price candle on the chart has appeared red, signaling a continued downward retracement.
Although this seems minimal, it threatens to grow stronger since price action lies below all the Moving Average (MA) lines on the chart. Meanwhile, the Stochastic Relative Strength Index (RSI) lines are maintaining an upward trajectory. However, an upward retracement seems unlikely as indicated by the RSI indicator since price action lies below all the MA curves.
GBPUSD Seems Ready to Fall Lower
Even on a shorter time frame chart, price action has fallen below all the MA lines. However, the difference here is that the last price candle on the chart has appeared green. Nevertheless, the position of prices below all the MA lines reinforces the fact that price action remains vulnerable.
In addition, the Stochastic RSI lines are still descending lower into the oversold region. Consequently, the GBPUSD market has a bearish outlook as price action may descend further into the oversold region. Therefore, traders can target the support at 1.2500 or 1.2450 as we head into the new year.
Do you want to take your trading to the next level? Join the best platform for that here.
Leave a Reply