Pound Sterling Price News and Forecast: GBP/USD's risk remains skewed to the downside
|GBP/USD Price Analysis: Cable indecisive near 200-day SMA support
GBP/USD created a Doji candle at the confluence of the 200- and 100-day simple moving averages (SMA) on Wednesday. A Doji candle occurs when an asset sees two-way business but ends the day on a flat note. It is considered a sign of indecision.
In GBP/USD's case, the Doji candle has appeared following a notable sell-off from 1.3483 to 1.2675 and at the 200-day SMA support line. As such, it could be taken to represent seller exhaustion. That said, a bullish reversal would be confirmed if the pair ends Thursday above the Doji candle's high of 1.2777. Alternatively, acceptance below the Doji's low of 1.2675 would imply a continuation of the sell-off from 1.3483.
GBP/USD Forecast: Brexit hopes provide temporal support
The GBP/USD remained under pressure, ending the day little changed in the 1.2710 price zone, after printing a daily low of 1.2674. The pair advanced during European trading hours, on the back of Brexit-related headlines, as EU’s chief negotiator Michel Barnier said that the EU is determined to get a trade deal with the UK but will be firm. He added that the transition period ends on 31 December and that it cannot be extended.
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