GBP/USD Forecast: strong selling interest around 1.2500/30

Valeria Bednarik FXStreet

The GBP/USD hovers spiked up to 1.2515, following news coming from Iran oil minister over a possible output cut deal, although the OPEC is at early talks ahead of the meeting, while an official statement is expected for later, during the American session. The pair however retreated, but holds near its daily low of 1.2466.

Earlier today, the Bank of England released a bank stress test, with the Royal Bank of Scotland being the worst possible performer on a risk-increased scenario. Barclays and Standard Chartered also failed to meet some of their minimum hurdles in an hypothetical scenario which contemplates Brexit and global recession.

The US will release its ADP employment survey alongside with spending and income figures at the beginning of the American session, followed later by Pending Homes Sales data for October.

Technically, the GBP/USD 4 hours chart presents a modest upward tone, given that the price has settled above its moving averages, while the RSI indicator aims higher around 56. Still the Momentum indicator maintains a neutral stance, heading lower around its 100 level. Selling interest around 1.2500/30 remains strong, and would take a break above this last to see the pair gaining some ground towards the 1.2600 region.

Below the daily low on the other hand, the risk turns towards the downside, with 1.2400 and 1.2365 as the next probable bearish targets.

View live chart of the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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